Amtek Engineering says Q2 net profit soar 74%

SINGAPORE - Amtek Engineering, a manufacturer of precision engineered components, recorded a 74 per cent jump in second quarter net profit to US$11.3 million on Thursday.

Revenue for the three months to Dec 31 grew 60 per cent to US$263 million, thanks to contribution from its unit Interplex Industries.

Amtek said in a statement: "While Interplex shares certain common product industry sectors with Amtek, it also introduced other new industry sectors to the group."

Revenue for its existing automotive business continued to register strong growth which would have been even strong, if not for the dilutive impact of a weaker Euro against the United States dollar, said the company.

This saw lower revenues recorded, after converting to its reporting currency.

After buying Interplex, revenue from the automotive product sector in the quarter more than doubled that of the same period a year ago, which made it Amtek's top revenue contributor.

The automotive product sector revenue grew 222 per cent to US$67 million.

Net profit for the half year grew 10 per cent to US$15.2 million, while revenue was up 46 per cent to US$488.5 million.

Earnings per share for the half year was 2.8 US cent, up from 2.6 US cent a year ago, while net asset value remained flat at 32 US cents as at Dec 31, compared with June 30.

The company declared an interim dividend of 1.3 cent per share.

Amtek shares closed down half a cent at 62.5 cents on Thursday.