Business briefing

Cosco Corp issues profit warning for FY2014

COSCO Corporation has warned that its earnings for the year ended Dec 31, 2014, will be significantly lower than those for the year ended Dec 31, 2013, due to the steep fall in crude oil prices over recent months. The oil rout has had an adverse impact on the global offshore marine industry, and specifically led to a S$90 million one-off charge for the company's discontinued Octabuoy hull and topside module project.

CSC unit gets arbitration award of S$36.1m

CSC Holdings said on Friday that its wholly owned subsidiary, L&M Foundation Specialist (LMFS), has been awarded S$36.1 million - the result of arbitration proceedings that it started against a third party in 2009. LMFS's accounting records reflect S$39.3 million as the net contract sum for the project in question. So, the group will have to provide for the difference of S$3.2 million, for the financial year ending March 31, 2015. LMFS is currently obtaining legal advice regarding the award, and CSC's board said that it would update shareholders and investors of any material developments.

CFM Holdings buys IPL for S$2m

CFM Holdings, which manufactures metal-stamped parts, is buying IPL, a clean-room medical disposables and wearables supplier, for S$2 million in cash. The company entered into a sale-and-purchase agreement with Neo Chwee Hum and Neo Chew Pieng on Friday to acquire the entire issued and paid-up share capital of IPL. CFM's board said that the proposed acquisition would diversify the company's risks from its current core business of metal stamping and fabricating engineering tools, and give CFM the opportunity to explore stamping and fabrication works with IPL's existing customers. The company will finance the acquisition with its internal funds.