Wearnes reverses to a net loss of $11.4 million in the second quarter

Mainboard-listed conglomerate WBL Corporation (WBL) posted a net loss in the second quarter, dragged down by lower sales in its technology and property divisions.

The group, also known as Wearnes, said yesterday that it recorded a net loss of $11.4 million for the three months to March 31, as its subsidiary Multi-Fineline Electonix (MFLEX) incurred an operational net attributable loss of $17.1 million.

In comparison, WBL recorded a net profit of $20.1 million in the corresponding quarter last year.

Revenue rose by 0.3 per cent to $600.4 million in the second quarter from the same period a year ago.

Net sales of MFLEX for the period were down 17.8 per cent to $215.9 million.

WBL also said that MFLEX recorded an inventory write-down due to unusable components.

On the property front, sales dipped 26.3 per cent to $2.8 million, due to delayed sales recognition of its developments.

At the end of the second quarter, WBL launched its serviced-apartments Shenyang Orchard Summer Palace in China.

WBL's automobile division, however, recorded a 19.9 per cent rise in sales to $276 million.

Loss per share amounted to 4.2 cents for the three months to March 31, reversing from earnings per share of 7.5 cents a year ago.

Net asset value per share was $3.48 as of March 31, unchanged from Sept 30.

The company declared an unchanged interim dividend of five cents a share.