SINGAPORE (May 7): Steel trader and property developer LTC Corporation reported a 3Q18 loss of $0.15 million compared to $1.9 million in earnings a year ago on lower margins.

Revenue for the quarter fell 2.7% to $27 million from $27.7 million previously due to lower turnover for steel.

Steel turnover decreased by $0.8 million to $25.1 million in 3Q18 from $25.9 million due to lower turnover in both Malaysia and Singapore. Net operating profit for steel decreased by $0.9 million to $1.7 million from $2.6 million as there was a significantly higher surge in steel prices in 3Q17 a year ago.

No turnover was recorded for property development for 3Q18. A net operating loss of $0.4 million was incurred for 3Q18 compared to a profit of $0.3 million in 3Q17.

Property rental turnover was unchanged at $1.9 million as per the previous corresponding quarter. Net operating profit decreased by $0.1 million to $0.8 million from $0.9 million for the previous period.

Including the results of investment holding, net operating profit for the group decreased by $2.5 million to $1.0 million.

LTC Corp highlights the possibility of improving construction demand Singapore’s private sector following the pickup in the residential property market, although the risk of increasing steel prices remains a challenge in Malaysia as supply contracts are mainly fixed-priced. The group also notes high international prices of steel rebar and an unstable USD/SGD exchange rate.

On the property front, the group also expects expects irregular turnover in Malaysia but does not anticipate rental rates sand occupancy for its investment properties in Singapore to change significantly this year.

LTC Corp shareholders are currently faced with a buyout offer by Mountbatten Enterprises, which is owned by LTC’s managing director and brothers together with the family’s investment vehicles Lion Investment (Singapore) and Lion Realty.

Mountbatten Enterprises recently extended its offer to buy out the company at 92.5 cents per share to May 11 from Apr 25 previously, and intends to delist LTC from the Singapore Exchange.

<hr/><a href="https://www.theedgesingapore.com/ltc-corp-buyout-offer-closing-date-extended-may-11https:/www.theedgesingapore.com/ltc-corp-buyout-offer-closing-date-extended-may-11">See: LTC Corp buyout offer closing date extended to May 11</a><hr/>

Shares in LTC Corp closed flat at 92 cents on Monday.

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