Sapura Industrial slips into the red in third quarter

PETALING JAYA: Industrial and automotive manufacturer Sapura Industrial Bhd fell into the red for the third quarter ended Oct 31, 2017 on lower revenue and higher operating costs, mainly cost of imported materials as well as labour and production-related expenses.

The group posted a net loss of RM1.2 million for the quarter compared with a RM1.6 million net profit for the same quarter in 2016.

Group incurred some non-recurring expenses in line with factory relayout activities in preparation for new parts launched in October 2017.

This was on 10% lower revenue of RM50.4 million, compared with RM56.1 million for the corresponding quarter in 2016.

Sapura Industrial said the outlook for the second half of the year will continue to be challenging for the automotive sector. As such, the group has intensified its efforts to further strengthen operational efficiency.

Total industry volume is projected to grow by 1.7% from 580,124 motor vehicles in 2016 to 590,000 in 2017.

Net loss for the nine-month period ended Oct 31, 2017 stood at RM2.1 million, compared with a RM2.6 million net profit for the same period in 2016.

This was on 1.7% lower revenue for the cumulative period at RM148.4 million, compared with RM150.9 million for the same period in 2016.

The group’s stock was untraded yesterday. Its last active closing price was 88 sen.