SINGAPORE - CONTRACT manufacturer Hi-P International reversed into the red in the second quarter, with a net loss of $3 million against a profit of $10.9 million in the same period last year.

Revenue fell by 25.5 per cent to $212.3 million for the three months to June 30, mainly due to lower sales volumes from two key customers.

Gross profit declined by 51 per cent to $13.9 million, mainly due to lower sales, slower pace of decrease in labour costs, and depreciation.

Loss per share amounted to 0.37 cent against earnings of 1.32 cents in the previous corresponding period. Net asset value per share eased to 68.85 cents from 73.09 cents as at Dec 31.

Looking ahead, the group expects to post higher revenue as well as to turn in a profit in the second half-year.