SINGAPORE (May 7): United Engineers reported a 3% rise in 1Q18 earnings to $9.0 million compared to $8.72 million in 1Q17.
Revenue for the quarter came in at $105.2 million, 1% lower than $106.1 million recorded in the previous year.
This was due to lower revenue contribution from the group’s Property Rental & Hospitality, Property Development and Manufacturing divisions, but partially offset by a 7% y-o-y increase in revenue from its Engineering & Distribution division.
Distribution costs dropped 10% y-o-y to $6.38 million, while finance costs declined by 15% y-o-y to $5.44 million.
Other expenses more than halved to $0.94 million compared to $2.06 million in the previous year, mainly due to the absence of foreign exchange losses recorded in 1Q17.
Income tax expense increased 96% to $3.2 million from $1.6 million a year ago, mainly due to higher operating profit and under provision of prior years’ income tax.
As at March 31, the group’s cash and cash equivalents stood at $395.5 million.
On the outlook, the global economic environment has showed signs of strengthening and the group believes that this will continue to bode well for Singapore’s property market.
The group intends to embark on asset enhancement initiatives for its investment properties in Singapore and may make selective acquisitions if and when such opportunities arise.
Shares in United Engineers closed at $2.67 on Monday.