United Engineers posts 76% decline in Q2 net profit

Mainboard-listed United Engineers on Friday said its second-quarter net profit declined 76 per cent to S$7.4 million compared to the previous year.

In a filing to the Singapore Exchange, the company said this was mainly due to an absence of profit contribution from property sales at The Rochester, which was completed in 2011.

Higher operating expenses also weighed down the firm’s bottomline.

Meanwhile, its revenue climbed 5 per cent to S$144.1 million, attributed mainly to the maiden rental contribution from The Rochester Mall and Park Avenue Rochester.

In April 2012, the company said it secured three environmental engineering contracts worth over S$70 million, including two from PUB and a contract for a waste-to-energy project at a poultry farm in Singapore.

Going forward, the firm expects recurring income from its engineering & construction as well as the property rental & services segments to be the main drivers for its turnover and operating profit.

Source : Channel NewsAsia – 10 Aug 2012

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