Corporate Social Responsibility

News

BH Global Q1 net falls 31% to $3.44m (BT)

BackApr 17, 2009

BH Global Marine saw a 31 per cent year-on-year fall in first quarter net profit as revenue dipped and cost of sales rose.

The group expects the short-term outlook to be challenging, and remains cautious for the rest of the financial year.

Net profit for the three months to March 31 fell to $3.44 million from $5 million a year ago. Revenue slipped 7 per cent to $22.85 million as cost of sales climbed one per cent to $15.15 million. Finance costs rose 57 per cent to $74,000.

BH Global attributed the year-on-year revenue decline to the weaker economic climate. However, the revenue was higher than the $20.1 million for the fourth quarter of last year.

For Q109, the group's marine cables and accessories segment, its largest revenue contributor, saw revenue slip 23 per cent to $14.1 million, primarily due to a fall in selling price as a result of lower copper prices.

The group's other segment of marine lighting equipment and accessories helped offset the decline partially, with an increased revenue contribution of $4.5 million, a 12 per cent increase year-on-year.

This was attributed to higher trading volume and the number of projects secured.

New revenue streams also contributed positively – marine switchboards and services and galvanised steel wire saw revenues of $2.1 million and $168,000 respectively.

BH Global said it maintained a healthy cash position of $9.3 million as at March 31, while net operating cash flow remained positive.

In Q1, the group acquired three businesses to extend its supply chain management capabilities. They are Z-Power, Sky Holding and Dream Marine LLC.

"By broadening our product offerings, we believe this will enhance our competitiveness among other players, especially during these extraordinary times," chief executive officer Vincent Lim said.

As Mr Lim aims "to capture the vast business opportunities in the market", the group will focus on measures such as extensive marketing efforts, diversifying into other markets overseas and related business segments through acquisitions of companies.

BH Global remains positive on its long-term outlook for the marine and offshore industry.

Earnings per share for Q1 fell 31 per cent to 0.82 cent.

BH Global closed at 23.5 cents yesterday, down half a cent.