Wearnes' Q4 net profit falls by half on poorer car and property sales

WBL Corp, also known as Wearnes, has posted a 49.6 per cent drop in fourth quarter net profit to $8.6 million on the back of a 9 per cent fall in revenue to $587.8 million.

Included in the profit is an exceptional item of $15.2 million, which mainly comprises the gains on disposal of $12.3 million from the sale of WBL's investment in Amlogic and $2.7 million from the sale of nil-paid rights of United Engineers.

For the full year to Sept 30, the group was in the red to the tune of $11.2 million against a profit of $75.3 million last year.

In the fourth quarter, revenue for the automotive division decreased 11.6 per cent to $230.2 million, mainly due to lower sales in Singapore and Malaysia.

Operational net attributable profit fell 84.9 per cent to $1.8 million, mainly due to lower margins and fewer passenger cars sold in Singapore as a result of increased competition and several regulatory changes.

Sales in property segment saw 85.6 per cent decrease to $6 million, mainly due to lower recognition of sales for the Chengdu Orchard Villa development project.

As to its technology division, net sales of Multi-Fineline Electronix were US$188.3 million (S$235.4 million), a 6.6 per cent decrease.

The engineering, manufacturing and distribution division recorded a 27.2 per cent increase in revenue to $61.8 million.

Quarterly earnings per share slipped to 3.1 cents from 6.3 cents previously while net asset value per share shrank to $3.33 from $3.48.

The company did not recommend a final dividend.