United Industrial Q2 profit falls as costs double

Net profit attributable to shareholders fell to S$74.7 million in the three months ended June 30.

United Industrial Corp
United Industrial Corp website

Property developer United Industrial Corp on Friday said net profit fell 33 percent in the second-quarter due to increased expenses and fair value losses.

Net profit attributable to shareholders fell to S$74.7 million in the three months ended June 30 compared to S$111.7 million in the corresponding period last year.

Total revenue at the company, which develops properties for investment and trading purposes primarily in Singapore, gained 53 percent to $361.9 million in the quarter.

Revenue from the sales of trading properties jumped 123 percent at S$231.5 million, primarily due to higher sales in Pollen & Bleu and progressive sales recognition for V on Shenton.

Fair value loss amounted to S$3.0 million in the quarter versus fair value gain of $51.5 million last year.

Meanwhile, selling and distribution costs doubled to S$10.9 million compared to S$5.4 million last year.

Net asset value per share edged up to S$4.44 as at June 30, 2017, from S$4.39 six months ago.

Shares of United Industrial closed unchanged at S$3.21 on Friday. The stock has gained 16 percent this year, in line with the rise in the benchmark Straits Times Index.

United Industrial Corp
United Industrial Corp website

Property developer United Industrial Corp on Friday said net profit fell 33 percent in the second-quarter due to increased expenses and fair value losses.

Net profit attributable to shareholders fell to S$74.7 million in the three months ended June 30 compared to S$111.7 million in the corresponding period last year.

Total revenue at the company, which develops properties for investment and trading purposes primarily in Singapore, gained 53 percent to $361.9 million in the quarter.

Revenue from the sales of trading properties jumped 123 percent at S$231.5 million, primarily due to higher sales in Pollen & Bleu and progressive sales recognition for V on Shenton.

Fair value loss amounted to S$3.0 million in the quarter versus fair value gain of $51.5 million last year.

Meanwhile, selling and distribution costs doubled to S$10.9 million compared to S$5.4 million last year.

Net asset value per share edged up to S$4.44 as at June 30, 2017, from S$4.39 six months ago.

Shares of United Industrial closed unchanged at S$3.21 on Friday. The stock has gained 16 percent this year, in line with the rise in the benchmark Straits Times Index.

READ MORE