Civmec Q1 profit falls 21.6% on translation from weaker Aussie dollar

HEAVY-ENGINEERING company Civmec said on Wednesday its net profit fell 21.6 per cent to S$8.7 million, or 1.73 Singapore cents per share, in its fiscal first quarter, largely due to the weakening of the Australian dollar against the Singapore dollar.

Revenue fell 15.5 per cent to S$143.8 million, or about A$143 million based on an average exchange rate of 1.0061 Singapore dollars for every one Australian dollar. The year-ago revenue was S$170.2 million, or about A$147 million based on an average exchange rate of 1.1580 Singapore dollars for every one Australian dollar.

Civmec did not explain the revenue decline in Australian-dollar terms.

The company said it had secured about S$141 million of new contracts during the first quarter, with an order book of about S$276 million as at end-September. The company had also established a new business unit during the quarter to focus on future Australian defence projects.

Civmec shares slipped 1.3 per cent, or half a Singapore cent, to close at 39.5 Singapore cents on Wednesday.