Pantech earnings down 47% in 3Q

Pantech Group Holdings Bhd posted a net profit of RM6.19 million in the third quarter ended Nov 30, down 47% from RM11.75 million in the previous corresponding quarter.

Revenue decreased by 18% to RM75.43 million from RM92.22 million. Earnings per share was 1.38 sen from 2.62 sen before.

Pantech attributed the weaker financial performance to higher material costs and weakening US dollar.

For the nine-month period ended Nov 30, the company’s earnings fell 40% to RM23.91 million from RM40.06 million previously. Revenue dropped 22% to RM262.87 million.

On its outlook, it said the current soft market demand continues to affect the group’s performance for the current financial year.

In the longer term, however, outlook of the oil and gas industries continues to be positive with the expected multi-billion ringgit in oil and gas investment under the Economic Transformation Programme.

The company intends to continue seek opportunities to grow its businesses, both locally and overseas, by expanding its capacity as the major pipes, fittings and flow controls solutions provider to the oil and gas industries and related upstream and downstream industries.

This article appeared in The Edge Financial Daily, January 27, 2011.