SINGAPORE (Aug 14): United Engineers reported 2Q19 earnings of $8.3 million, a 25% decline from $11.0 million in the same quarter last year, due primarily to a decline in revenue.

Earnings per share for the quarter came in at 1.3 cents, down from 1.7 cents the previous year.

Revenue for the quarter fell 8% to $88.1 million from $96.2 million in the preceding year, on the back of lower revenue contributions from manufacturing, engineering and property development segments – which displayed a fall of 20%, 12% and 32% respectively.

This decrease was partially mitigated by a 5% higher revenue contribution from the property rental and hospitality segment.

Distribution costs decreased 15% to $4.9 million from $5.8 million in 2Q18, mainly due to lower selling and marketing expenses for overseas property development projects.

In addition, other expenses for the quarter more than doubled to $2.1 million from $0.6 million last year, mainly due to the loss on sale of an investment property in China and the absence of write-back of excess provision in relation to a completed overseas development project recorded in 2Q18.

As at end June, cash and cash equivalents stood at $279.7 million.

In its outlook statement, United Engineers noted that the weaker economic outlook in Singapore coupled with the sustained impact of property cooling measures may continue to weigh on the overall sentiment of the residential property market in Singapore, with office rentals in Singapore being likely to moderate against the backdrop of heightened trade tensions and global economic uncertainties.

Shares in United Engineers closed 2 cents higher at $2.62 on Wednesday, prior to the release of results.