Venture Corp posts 16.9% rise in Q3 earnings

Manufacturing services provider's revenue rise of 1.8% to $705.7m helps boost profit in the quarter to $47.4m

Higher revenue helped send earnings up at contract manufacturing services provider Venture Corporation in the third quarter.

Net profit rose 16.9 per cent to $47.4 million for the three months to Sept 30, while revenue climbed 1.8 per cent to $705.7 million.

Net profit for the nine months to Sept 30 rose 16 per cent to $126.6 million, while revenue grew 2.9 per cent to $2.02 billion.

No dividend was declared for the period.

Venture Corp said in its earnings report yesterday that the improvement in profitability was "largely driven by the group's ability to create higher value through stronger complementary and collaborative partnerships".

It registered an 18 per cent increase in profit before tax to $56.7 million during the quarter, while profit before tax margins were higher at 8 per cent over the 6.9 per cent previously.

It also recorded an income tax expense of $9.2 million based on tax incentives granted to its subsidiaries.

  • AT A GLANCE

  • NET PROFIT: $47.4 million (+16.9%)

    REVENUE: $705.7 million (1.8%)

    DIVIDENDS PER SHARE: Nil

Earnings per share for the quarter came in at 17.1 cents, up on 14.7 cents previously, while net asset value per share stood at $6.644 as at Sept 30, lower than the $6.847 as at Dec 31 last year.

The group's cash and bank balances amounted to $427.6 million as at the end of the quarter. It was net cash positive at $337 million, higher by $115.7 million compared with the same quarter last year.

Venture Corp acknowledged that the industry is undergoing rapid changes and transformation. "In the thick of all this, Venture has successfully identified and carved out opportunities through its growing clusters of excellence in selected technology domains," it said.

"Structurally, Venture will continue to forge new complementary and collaborative alliances and partnerships with industry leaders in its fields of interest."

Singapore-based Venture Corp comprises 40 companies with clusters in South-east Asia, North-east Asia, America and Europe. It employs more than 12,000 people worldwide.

Venture Corp shares closed five cents or 0.5 per cent higher at $9.50 yesterday, before the results were released.

A version of this article appeared in the print edition of The Straits Times on November 05, 2016, with the headline 'Venture Corp posts 16.9% rise in Q3 earnings'. Print Edition | Subscribe