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Tuesday, February 26, 2019

Globetronics quarterly net profit down 12%

CORPORATE NEWS
Tuesday, 26 Feb 2019

Looking ahead, Globetronics said that based on customer forecast, it expects the group’s performance for the first-half of 2019 to reflect the current unfavourable end-market environment and the subdued mobile and smartphone demand.

PETALING JAYA: Globetronics Technology Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png’s net profit for the fourth quarter ended Dec 31 dropped 12.2% to RM21.98mil, while revenue decreased 21.52% to RM82.24mil.

The lower revenue and net profit were mainly due to softer volume loadings from certain customers in the group and an impairment loss on property, plant and equipment of RM3.04mil recognised in the accounts for the quarter.

As a result, earnings per share dropped to 3.29 sen from 3.78 sen in the same quarter of the previous year.

The company, however, has proposed a three-sen dividend for the quarter, bringing total dividends for the year to six sen.

This is a decrease from the eight sen paid in the previous year.

For the full year ended Dec 31, 2018, meanwhile, net profit increased 37.09% to RM70.12mil, while revenue jumped 7.68% to RM327.96mil.

The higher revenue and net profit for the year were due to a few reasons.

There was the overall pick-up in volume loadings from certain customers in the group, better utilisation of its operational resources and facilities; and a foreign-exchange (forex) gain of RM980,000 recognised in the income statement as compared to a forex loss of RM1.5mil for the previous year ended Dec 31, 2017.

Looking ahead, Globetronics said that based on customer forecast, it expects the group’s performance for the first-half of 2019 to reflect the current unfavourable end-market environment and the subdued mobile and smartphone demand.

In addition, macroeconomic and general industry trends do not appear to offer additional support to the consumer market.

“It is expected that overall business and volume loadings would start to improve in the second-half of 2019. The group will continue to focus on escalating up the value chain and riding on the research and development initiatives in new product design and development with our key customers, moving forward,” said Globetronics.

Read more at https://www.thestar.com.my/business/business-news/2019/02/26/globetronics-quarterly-net-profit-down-12/#8ywCGRGJBrYRfO0T.99

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