United Industrial Corp posts 9% rise in Q3 earnings to $65.3 million

SINGAPORE - United Industrial Corp (UIC) has posted a 9 per cent rise in third quarter earnings to $65.3 million.

Revenue for the three months to Sept 30 was up 6 per cent at $189.4 million, due mainly to higher sales of trading properties, which rose by 25 per cent to $$65.9 million as a result of higher sales and progressive sale recognition for the group's residential projects.

Revenue from hotel operations eased 4 per cent to $37.2 million.

Gross rental income from investment properties fell slightly by 2 per cent to $67.3 million.

Earnings per share rose to 4.6 cents from 4.3 cents previously while net asset value per share climbed to $4.19 compared to $4.09 as at Dec 31.

Looking ahead, UIC appears glum about its prospects.

It noted that office demand in the central business district is expected to remain subdued and steady.

Government cooling measures continue to weigh on the residential property market although there are signs of recovery in certain segments of the market.

"Slower growth in tourist arrivals, new supplies and vacancies in existing shopping centres and the rising popularity of online retail are challenges for a positive growth in the retail trade," it said.

"Increasing supply of new hotels are competing with traditional city hotels and affecting revenue growth."