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XMH Q3 net profit down 15% to S$2.7m
XMH Holdings, a diesel engine provider for the marine and industrial sectors, said net profit for its third quarter ended January 31, 2015 was S$2.7 million, down 15 per cent from S$3.2 million a year ago.
Revenue fell 30.4 per cent to S$23.1 million, from S$33.1 million a year ago. This was due mainly to lower sales in the firm's distribution and after-sales segments.
The company completed the acquisition of an 80 per cent stake in marine automation services provider Z-Power Automation earlier this month.
It said that the slowdown in the offshore and marine industry due to the oil price plunge has weighed on its distribution business.
While the group does not see an immediate recovery, some developments can cushion its business performance, XMH said.
They include Indonesia's plans to promote the shipbuilding industry and Vietnam's plans to grow its fishing and logistic fleets.
XMH closed trading at 23 Singapore cents, up half a cent or 2.2 per cent, before results were out.