THE net profit of semiconductor and machine manufacturer Frencken Group : E28 0%dipped 35.1 per cent in the third quarter (Q3) ended Sep 30 to S$7.1 million, from S$11 million in the same period last year.

Its revenue declined 5.6 per cent year on year to S$184.4 million, with the gross profit margin falling to 12.4 per cent from 13.7 per cent in Q3 2022.

The group has two main divisions – mechatronics and integrated manufacturing services.

The revenue of the mechatronics division (comprising the semiconductor, medical, analytical and life sciences, and industrial automation segments) fell 5.8 per cent to S$159.5 million.

Revenue for the semiconductor segment decreased 10.5 per cent to S$74.6 million; the increased sales in Europe from a key customer proved insufficient to make up for the lower sales registered in Asia as a result of an industry slowdown.

The revenue for the medical segment rose 19.5 per cent on higher sales to a significant customer in Europe; the revenue for the analytics and life sciences segment grew 22.4 per cent to S$42.9 million, thanks to higher sales in both Europe and Asia.

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The industrial automation segment’s revenue decreased 63.5 per cent to S$6.8 million. The company said it was because it was “dependent on a key customer’s capital expenditure requirements”.

The integrated manufacturing services division’s revenue fell 6.5 per cent to S$24.3 million as a result of lower sales of its automotive and consumer and industrial electronics segments.

The group said it expects revenue to remain stable in H2 2023, relative to H1 2023; it expects the semiconductor, medical, analytical and life sciences segments to post increased revenue, despite a forecasted decrease in revenue from industrial automation.

Shares of the counter closed at S$1.08 before the update.