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UMS Q2 profit leaps 77% to S$11.5m; bonus issue announced
BUOYED by a boom in global semiconductor industry, precision engineering firm UMS Holdings' net profit for the second quarter jumped 77 per cent to S$11.5 million, from S$6.5 million a year ago.
Revenue for the three months ended June 30 surged 81 per cent to S$42.7 million, from S$23.6 million a year ago.
A dividend of one Singapore cent per share was declared, unchanged from a year ago. A bonus issue of one bonus share for every four existing ordinary shares was also announced to increase liquidity.
UMS said industry forecasts indicate worldwide sales of new semiconductor manufacturing equipment will increase 19.8 per cent in 2017 and 7.7 per cent in 2018, setting new record highs. Its major customer - not named but understood to be US firm Applied Materials - is also projecting accelerated growth in the coming quarter.
However, UMS expects the customer's demand to moderate in the second half of the year. New terms of its renewed system integration contract will have a lower average selling price, mitigated by expected minimal margin reductions and efforts to increase production in Penang, Malaysia in order to lower operating costs.
UMS last traded at S$1.08, down one Singapore cent on Friday.