WBL Q4 profit hit by car cooling moves

CAR cooling measures in Singapore finally bit for United Engineers' (UE) subsidiary WBL Corporation, whose net profit for its fourth quarter ended Sept 30 halved to $8.6 million, from $17 million a year ago. Revenue was down 9 per cent at $587.8 million, due to lower car sales in Singapore and Malaysia as well as lower recognition of China property sales. No dividend was declared.

"The recent announcement of the refinement of the categorisation to the COE system, the introduction of the tiered system of Additional Registration Fee and the revisions to the quantum and tenure of car loans may have a dampening effect on the Singapore market as consumers adjust to these new changes," WBL said yesterday.

WBL had reported increased car sales in its third quarter, though margins were already affected. In the fourth quarter, sales dropped 11.6 per cent to $230.2 million, while net attributable profit dived 84.9 per cent to $1.8 million. Lower car sales in Singapore and lower margins were exacerbated by foreign exchange losses and a reversal of tax overprovision for prior years, the company said.