Poor disk drive sales drive down Broadway Industrial's net profit by 97%

Broadway Industrial Group has suffered a 97.3 per cent plunge in second quarter net profit to a mere $158,000.

Revenue for the three months to June 30 fell by 8.5 per cent to $158.6 million, mainly due to the continued weakness in the hard disk drive market.

Gross profit decreased 29 per cent to $12.5 million owing to the subdued sales.

As a result of under-utilisng its disk drive production capacity, gross profit margin dropped to 7.9 per cent from 10.2 per cent in the corresponding period last year.

Earnings per share slumped to 0.04 cent from 1.39 cents previously while net asset value per share eased to 52.07 cents from 52.3 cents.

No interim dividend was recommended, unlike last year, when the company paid one cent a share.