UIC’s Q2 net profit up 23%

United Industrial Corporation (UIC) has reported a 23 per cent year-on-year increase in net profit to S$136.7 million for the second quarter ended June 30.

The company said it posted a fair value gain of S$147.8 million to its income statement for the quarter, based on valuations by independent professional valuers.

The valuations were for investment properties held by subsidiary companies.

Net profit from operations alone actually dropped by 44 per cent to S$55.7 million.

Total revenue for the quarter was S$235.7 million, down 54 per cent on-year.

This was attributed to lower sales recognition of trading properties and lower rental income.

UIC said this was partially offset by higher revenue from information technology and hotel operations.

UIC added that while office occupancy rates improved, gross rental income at S$70.6 million for the quarter was down 5 per cent on-year as office renewal rental rates were lower than the expiry rates.

However, revenue contribution from its hotels – Pan Pacific Singapore and Westin Tianjin – increased by 8 per cent to S$33.4 million in the quarter due mainly to improved room occupancies.

Earnings per share (EPS) for the quarter, excluding fair gains on investment properties, amounted to 4 cents, down from 7.2 cents a year ago. Including fair value gains, EPS for the quarter was 9.9 cents, up from 8 cents a year ago.

Source : Channel NewsAsia – 5 Aug 2011

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