Unionmet reverses into the red

SINGAPORE - Indium ingot maker Unionmet (Singapore) reported a second-quarter net loss of US$2.2 million (S$2.7 million), reversing from a profit of US$300,000 in the same period last year.

Revenue rose 9.5 per cent to US$6 million for the three months to May 31 from a year ago, mainly due to trading in aluminium and zinc and their related products.

The company said despite the slight increase in revenue, margins remained thin at 0.6 per cent.

Gross margins fell 69.2 per cent to US$36,000, which highlighted a need to move towards new high margin businesses, said Unionmet.

Loss per share was 0.35 US cent, against earnings of 0.05 US cent a year ago.

Net asset value was 4.76 US cents per share as at May 31, down from 5.66 US cents as at Nov 30 last year.

Unionmet shares closed down 0.3 cent at 6.2 cents on Thursday.