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UMS posts 44% slide in Q2 net profit on trade tensions, falling prices
GLOBAL trade tensions and tough market conditions continued to affect the performance of mainboard-listed UMS Holdings.
The precision engineering firm on Wednesday reported a 15 per cent drop in revenue for the second quarter ended June 30 to S$30 million from S$35.2 million the year before.
It said that trade tensions between the United States and China, along with plunging memory prices and the shift in chipmakers' strategies, have continued to weigh on its performance.
Net profit was down 44 per cent year-on-year to S$8.1 million from S$14.5 million in the year-ago period. Earnings per share were 1.51 Singapore cents, compared to 2.70 cents a year ago.
UMS said it expects market conditions for the second half of the year to remain challenging, what with the current uncertainties in the global semiconductor industry, amid the ongoing China-US trade dispute and the more recent dispute between South Korea and Japan.
However, the group added it also expects to continue to benefit from its diversification beyond the semiconductor industry.
"Barring any unforeseen circumstances, the group will remain profitable in FY2019," it said.
It has declared a dividend of 0.5 cent per share for the quarter, compared to a dividend of one cent per share in the year-ago period.
UMS shares closed up 0.5 cent at S$0.585 on Wednesday.