Lee Metal reports 32% rise in 1Q earnings to $2.9 mil on lower contribution from property business

Lee Metal reports 32% rise in 1Q earnings to $2.9 mil on lower contribution from property business

By: 
PC Lee
14/05/18, 06:41 pm

SINGAPORE (May 14): Lee Metal Group reported a 32% rise to 1Q18 earnings ended March to $2.9 million from $2.2 million a year ago.

For 1Q18, group turnover increased 23.4% to $100.4 million from $81.4 million in the corresponding quarter last year.

The higher turnover was attributable to Property Development and Investment business which contributed $21 million, but partially offset by Fabrication & Manufacturing business which decreased $2 million.

The group completed its sale of a newly redeveloped bungalow in January for its Property Development and Investment business.

Although the decrease in turnover for its Fabrication and Manufacturing business was due to lower tonnage delivered, this was partially offset by higher steel prices.

The group's gross profit margins as a percentage of turnover in 1Q18 was 14.4%, lower than the corresponding period last year of 19.6%. This was mainly due to lower margins derived from most of the products in the Fabrication & Manufacturing business.

In line with the decrease in tonnages delivered in the Fabrication & Manufacturing business, lower costs were incurred for insurance, freight and transportation, repair and maintenance and other operating expenses. However, higher costs were incurred for rental and financial expenses due to higher stockholding.

Share of loss of associate decreased 62.5% to $6 million due to lower overheads incurred.

Lee Metal says although the rate of contraction in Singapore’s construction sector has eased, margins are expected to remain under pressure due to excess capacity and continuous intense competition among the industry players.

Shares in Lee Metal closed 0.5 cent lower at 42 cents.

Counsel argue over how witnesses' conditioned statements were prepared and used

SINGAPORE (May 27): The prosecution and defence in the 2013 penny stock crash trial on May 23 crossed swords over how conditioned statements had been prepared and the relevance of questions raised in the cross-examination of these statements. Deputy public prosecutor Peter Koy said questions by the defence counsel for alleged co-conspirators John Soh Chee Wen and Quah Su-Ling were a “distraction from the facts”. “Questions as to what was shown to the witness, what trade and telephone data was shown to the witness and which data was filtered and shown to the witness are irrelevant t....
Read More >>

Briefs

SINGAPORE (May 27): “We believe that the president of the US is engaged in a cover-up.” — US House Speaker Nancy Pelosi, following a meeting with other Democratic Party leaders on whether or not to impeach US President Donald Trump. Singapore and Malaysia suspend intercity rail project The construction of a $1.4 billion rail project linking Singapore and Malaysia’s southern state of Johor has been suspended until Sept 30. The move, which was announced on May 21, was mutually agreed to by both of the countries’ transport ministers. “This does not mean we are terminating the....
Read More >>

Entropica Labs aims to provide insights for health sciences using quantum computing

SINGAPORE (May 27): Quantum computing used to be considered a technology bordering on science fiction. But thanks to recent developments in the field, this next generation of computing is now closer to reality than before. This is opening up possibilities for many practical applications that have attracted the attention of both large corporations and entrepreneurial start-ups. One of the start-ups is Entropica Labs, which aims to develop quantum computing software to solve complex problems in the field of molecular biology. This would provide doctors with a better understanding of human phy....
Read More >>