Cost overruns and disposal loss drag Yongnam into the red in Q3

DESPITE a jump in revenue, construction group Yongnam Holdings reported a net loss of $3.4 million in its third quarter, compared with a net profit of $10.3 million a year ago.

Yongnam attributed the loss to cost overruns of $10.8 million for three ongoing structural steelwork projects and a lower revenue mix from higher-margin specialist civil engineering projects.

The three-month period ended Sept 30 also saw a non-recurring loss of $8.1 million on a disposal of fixed assets - mainly a disposal of pipe piles used in its specialist civil engineering businesses which Yongnam said resulted in a sharp increase in general and administrative expenses.