UMS posts 29% drop in Q4 earnings to S$11.1 million
A final dividend of S$0.02 per share for FY2024 will be paid out on May 23, if shareholders approve
UMS Integration posted a 29 per cent year-on-year fall in earnings to S$11.1 million for the fourth quarter of FY2024 ended December on lower revenue and higher expenses.
Earnings per share stood at S$0.0146 for Q4 FY2024, lower than S$0.0234 for the year-ago period.
A final dividend of S$0.02 per share for FY2024 will be paid out on May 23 – if approved by shareholders – lower than S$0.022 for FY2023.
Revenue declined by 9 per cent to S$67.2 million, said the company in its financial results on Friday (Feb 28). UMS Integration provides equipment manufacturing and engineering services to semiconductor original equipment manufacturers.
Specifically, semiconductor segment sales were 4 per cent lower due to a decline in semiconductor integrated system sales.
Sales in the other segment, which comprises the manufacture of water disinfection systems, and the trading of non-ferrous metal alloys and cutting tools, slid 65 per cent. This was mainly due to the material and tooling distribution business being affected by the general economic slowdown.
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Geographically, all the group’s key markets, except Malaysia, posted lower revenue, compared with the same period in FY2023.
Revenue from Malaysia almost quadrupled as the group continued to ramp up production of semiconductor components for a new major customer.
Sales in Singapore fell 12 per cent mainly due to lower overall semiconductor sales, while those in the US and Taiwan decreased 10 and 28 per cent, respectively, due to lower component sales in the US and lower component spares sales in Taiwan.
For FY2024, net profit fell 32 per cent to S$40.6 million, while revenue declined 19 per cent to S$242.1 million.
Net asset value per share rose to S$0.5888 cents as at end-FY2024, compared with S$0.5369 as at end-FY2023.
The group’s new 300,000-square-foot production facility in Penang is largely completed and operational, and has obtained its Certificate of Completion Compliance, said UMS.
Production has commenced for its new customer, and the group expects “significant” improvement in delivery, supported by strong order flow as production ramps up.
The group is working on several new product introductions from its new customers as new product families are forecast to rise in the coming months.
Two of the group’s major global semiconductor customers – which were not named in the media statement – have given positive outlook guidance for 2025, riding on the acceleration of artificial-intelligence investment and demand worldwide.
UMS shares closed down 1 per cent or S$0.01 at S$1.02 on Friday, before the financial results were made public.
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