Pan-United's Q2 net profit drops 23%

PAN-UNITED Corp's second quarter net profit fell 23 per cent to S$5.26 million compared with the corresponding quarter in the preceding year.

For the three months ended June 30, revenue sank 14 per cent to S$178.28 million, while earnings per share shrank to 0.9 Singapore cent from 1.2 Singapore cents in the previous year.

Revenue for the six month period was 13 per cent lower at S$359.42 million while net profit slumped 38 per cent to S$7.3 million.

Industry demand for ready-mixed concrete (RMC) and cement declined by about 13 per cent and 7 per cent year on year respectively, it highlighted, in a review of H1 2016.

The port division in China continued to perform well in the second quarter, however. "Against the backdrop of China's economic slowdown, cargo volumes at our port facility in Changshu remained steady due to wider customer base and throughput growth in key cargoes," said Pan-United.

However, its shipping division posted a S$2.2 million loss in H1 2016 due to lower vessel utilisation.

A dividend of S$0.01 was announced, down from S$0.015 in the previous year.