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ISDN Q3 net profit falls 25.5%
ISDN Holdings on Friday posted a 25.5 per cent fall in net profit to S$1.8 million for the third quarter ended Sept 30, down from S$2.4 million a year ago.
Revenue shrank 5.8 per cent to S$64.7 million, mainly due to the general economic slowdown arising from global trade tensions as well as a depreciation in the Chinese yuan against the Singapore dollar, which is ISDN's reporting currency.
For the nine months ended Sept 30, net profit declined 41.2 per cent to S$7.3 million, and revenue decreased 8.3 per cent to S$211.7 million.
The core industrial automation business remained the group's key revenue generator for the period, accounting for approximately 98.5 per cent of its total revenue.
Said ISDN managing director and president Teo Cher Koon: "In this softer economic environment, we have sought to proactively protect shareholder value by controlling expenses and tightening sales policies while capitalising on our diversified customer base for business sustainability.
Our operations remain profitable and are underpinned by fundamental demand in industries which require sophisticated manufacturing and production in Asia."
The group will remain vigilant in responding to near-term headwinds, but also intends to focus in the long term on growing its core business by broadening its customer base, end-markets, geographies and solutions. Other plans include building its technology roadmap and deepening the value-add of its offerings, collaborating with global technology leaders through joint ventures and close partnerships, and optimising its organisation structures and operations.
Mr Teo added that ISDN also has investments in three hydropower plants that it can monetise. Two of these are nearing construction completion, while the third is slated for construction in FY2020.
ISDN shares closed unchanged at S$0.225 on Friday before results were announced.