KUALA LUMPUR (Nov 16): Sapura Industrial Bhd reported its second consecutive quarterly loss for the third quarter ended Oct 31, 2017 due to lower revenue and higher operating costs.

The automotive manufacturing group posted a net loss of RM1.24 million for the third quarter, compared with a net profit of RM1.59 million a year earlier.

The higher costs was mainly made up of costs of imported materials, labour costs and production-related expenses, said Sapura Industrial in a stock exchange filing today.

Losses per share amounted to 1.7 sen, compared with earnings per share (EPS) of 2.18 sen previously.  

The group has nonetheless declared a two sen dividend per share, down one sen from the corresponding period last year.

Quarterly revenue dipped 10.21% on-year to RM50.4 million, from RM56.13 million previously. This, said Sapura Industrial, was mainly due to lower demand from original equipment manufacturers (OEM).

The group also reported a loss of RM2.13 million or 2.93 sen per share for the first three quarters of the current financial year, against a net profit of RM2.58 million or 3.55 sen previously, also due to lower revenue and higher operating costs.

Revenue slid 1.66% to RM148.48 million, from RM150.89 million amid lower OEM demand.

On prospects, Sapura Industrial said: “The outlook for the second half of the year will continue to be challenging for the automotive sector.

“As such, the group has intensified its efforts to further strengthen operational efficiency,” it added.

Shares of Sapura Industrial were not traded today. At its last traded price of 88 sen a share, the group has market capitalisation of RM64.04 million.