Friday, December 30, 2011

VS Industry 1Q net profit dn 10.9% to RM11.59m on stiffer competition

KUALA LUMPUR (Dec 30): VS Industry Bhd's earnings fell 10.9% to RM11.59 million in the first quarter ended Oct 31, 2011 from RM13.01 million a year ago as it was affected by stiffer competition and losses from its China associate.

It said on Friday that revenue increased 14.1% to RM282.43 million from RM247.39 million while earnings per share were 6.39 sen compared with 7.27 sen. It declared an interim dividend of 5.0 sen versus 2.0 sen a year ago.

VS Industry said at the pre-tax level, its profit fell RM5.2 million or 28.7% to RM12.90 million from RM18.10 million.

'The lower profit before tax was mainly due to increased competition in the electronic manufacturing services sector and higher share of loss from associate in China,' it said.

On the Malaysia operations, it said revenue increased by RM25.80 million to RM242.80 million from RM217 million a year ago. However, its pre-tax profit fell to RM12.8 million from RM14.6 million due to increased competition in the electronic manufacturing services sector.

On its Indonesian operations, it reported higher revenue of RM38.60 million from RM25.90 million a year ago. Its pre-tax profit remained comparable at RM3.7 million mainly due to change in business model mix.

When compared with the immediate quarter, VS Industry, said the first quarter just ended saw the group making a pre-tax profit of RM12.90 million compared to RM6.0 million in the preceding quarter.

VS Industry said the better performance was mainly due to higher sales generated by the Malaysian and Indonesian operations and lower share of loss from its associate in China.

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