SINGAPORE (Nov 14): Fu Yu Corporation reported a 55.9% decline in 3Q17 earnings to $0.8 million compared to earnings of $1.8 million in the same period a year ago, due to higher operating expenses and a loss of joint venture.

The manufacturer and supplier of high-precision injection moulds and plastic parts posted 4.5% higher revenue of $50.2 million from $48.1 million a year ago on higher sales from the group’s Singapore and Malaysia operations, while sales from its China segment remained steady.

Gross profit grew 20% to $8.4 million from $7 million while gross profit margin expanded to 16.8% from 14.6%.

Other income fell 8.5% to $1.7 million from $1.9 million a year ago on lower rental income.

Meanwhile, other operating expenses amounting to $0.8 million was recorded in 3Q17 due to a foreign exchange (forex) loss due to the weakening of the USD against SGD and MYR.

As at Sept 30, the group had a cash balance of $94.6 million and zero borrowings.

In its outlook, Fu Yu says that given its sound financial position and established manufacturing capabilities in Asia, the group believes it has the ability to withstand challenging business periods and capitalise on opportunities when they arise.

A second interim dividend of 0.25 cent per share has been declared.

Together with the first interim dividend of the same amount paid on Sept 7, this brings the total dividend for FY17 to 0.5 cent per share, which translates to a payout of approximately 182% based on the NPAT attributable to owners of the company in 9M17.

Shares in Fu Yu closed 2.3% lower at 22 cents on Tuesday.