One-off gain boosts profit of PNE Industries

SINGAPORE - Electronics manufacturer PNE Industries reported on Thursday a more than doubling of its net profit to $8.5 million from $3.8 million previously.

The jump was the result of a one-off gain amounting to $9.8 million from the disposal of interest in an associated company.

Excluding the gain, the company would have made a $1.2 million net loss.

Revenue for the year to Sept 30 rose by 2.6 per cent to $84 million, lifted by higher contributions recorded by the contract manufacturing segment.

"Almost half of the group's sales in FY14 were in Europe. Economic conditions in Europe have remained uncertain since the European debt crisis… such uncertainty may affect the group's future sales," PNE Industries said.

The company also faces pricing pressure from customers, while its printing materials business continues to come under strong competition. To manage costs and losses in this business, PNE Industries announced that it will stop the in-house manufacturing of its printing materials in the next financial year.

Earnings per share was 2.55 cents, up from 1.12 cents previously while net asset value per share inched up by 0.1 cent to 21.2 cents.

The company announced a final dividend of 0.5 cent per share.