Fu Yu Corp announces 56.8% lower 4Q earnings of $2.4 mil on other operating expenses

Fu Yu Corp announces 56.8% lower 4Q earnings of $2.4 mil on other operating expenses

Michelle Zhu
28/02/18, 07:41 pm

SINGAPORE (Feb 28): Fu Yu Corporation posted 4Q17 earnings of $2.4 million for the 4Q ended Dec 2017, 56.8% down from $5.6 million a year ago on other operating expenses.

Revenue for the quarter grew 8.7% to $52.7 million from $48.5 million, buoyed by higher sales across its operations in Singapore, Malaysia and China.

Gross profit margin expanded to 19.1% compared to 17.3% in 4Q16.

Notably, other operating expenses in 4Q amounted to $1.5 million, due mainly to a foreign exchange loss incurred over the quarter resulting from the weakening of the USD against the SGD and MYR.

This represented a negative swing of $5 million from 4Q16, during which the group recorded foreign exchange gain of S$3.5 million.

The latest set of quarterly results concludes Fu Yu’s FY17 earnings at $4.5 million half of its earnings of $10.5 million recorded in FY16.

A final dividend of 1 cent per share has been declared for FY17.

Together with interim dividends of 0.5 cent, the group’s total dividend for the year would be 1.5 cents per share, translating to a dividend payout of approximately 252%.

Highlighting its sound financial position and established manufacturing capabilities in Asia, Fu Yu says it believes it is capable of withstanding challenging business periods and is positioned to capitalise on opportunities that arise.

The group adds that it will focus executing business development plans with the aim of driving sales and improving the utilisation rate of its factories, as well as continue its initiatives to control its cost structure which yielded cost savings during FY17.

Shares in Fu Yu closed 1.54% lower at 19 cents on Wednesday.

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