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Tuesday, October 25, 2016

Globetronics 3Q net profit drops 55% on lower sales, forex loss

Globetronics 3Q net profit drops 55% on lower sales, forex loss
By Ahmad Naqib Idris / theedgemarkets.com | October 25, 2016 : 7:25 PM MYT

KUALA LUMPUR (Oct 25): Globetronics Technology Bhd's net profit dropped 55% to RM9.15 million or 3.25 sen per share in the third quarter ended Sept 30, 2016 (3QFY16) from RM20.49 million or 7.28 sen per share in 3QFY15, as it saw lower year-on-year sales and recognised a foreign exchange (forex) loss.

Revenue for the quarter fell 40% to RM52.46 million from RM88.71 million in the previous year. The group said sales from both its Malaysia and Singapore segments were lower year-on-year.

"The lower revenue and net profit achieved in the quarter [were] mainly due to lower volume loadings from some of the group's customers as a result of reduction in end customers' demand and forex loss recognised amounting to RM3.03 million," it said in its filing with the exchange.

For the cumulative nine months to Sept 30 (9MFY16), net profit plunged 65% year-on-year to RM19.35 million or 6.87 sen per share from RM55.57 million or 19.76 sen per share, while revenue fell 37% to RM168.61 million from RM266.43 million.

Going forward, Globetronics said it expects similar performance in the following quarter, with business and product loading to gradually recover in the financial year ending Dec 31, 2017 (FY17).

"The group will continue to focus on escalating up the value chain and riding on the R&D initiatives in new products design and development with our key customer. This initiative is expected to result in the manufacturing of new products in year 2017," said the group.

Globetronics fell 32 sen or 8.3% to close at RM3.56, giving it a market capitalisation of RM1 billion.

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