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Lum Chang Q2 profit doubles on gains from weaker ringgit
CONSTRUCTION firm Lum Chang on Thursday said net profit for its fiscal second quarter more than doubled on currency gains linked to the weaker ringgit.
Net profit for the three months ended Dec 31, 2014, stood at S$7.25 million, compared to S$3.14 million a year ago.
It made a currency gain of S$1.98 million for the quarter, compared to a loss of S$516,000 a year ago. This arose mainly from the translation of the company's ringgit-denominated payables related to the purchase of a 49 per cent interest in a subsidiary.
"The loss for the corresponding period last year arose mainly in respect of the translation of the company's Malaysian ringgit-denominated receivables from a subsidiary."
Gross profit also rose 19 per cent to S$13.9 million, as a decline in revenue was weaker than that of costs.