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Tee International Q3 profit down 76.5%

Despite an increased revenue, Tee International's earnings plunged 76.5 per cent in the third quarter as cost of sales increased even more, and costs rose.

For the three months ended Feb 28, its net profit fell to S$133,000, from S$567,000 a year ago. This translated to earnings per share of 0.03 cent, compared to 0.12 cent for the same period last year.

Its revenue rose 15.5 per cent to S$43.1 million due to higher revenue recognised for ongoing engineering projects, but this was outpaced by cost of sales, which rose 19.2 per cent to S$37.3 million. This left the engineering, real estate and infrastructure group with a gross profit of S$5.8 million, down 3.8 per cent compared with the previous year.

Tee International said that operational challenges continue to be present. "The group remains selective and prudent in pursuing potential growth prospects in Singapore and in the region. Currently, the group is focused on delivering its ongoing Engineering and Real Estate projects, and at the same time tapping on its existing business networks and strong credentials to win new projects."

The counter last traded at S$0.26 on April 7.