This article first appeared in The Edge Financial Daily on August 3, 2018
KUALA LUMPUR: Semiconductor manufacturer Unisem (M) Bhd’s net profit for the second quarter ended June 30, 2018 fell 26% year-on-year (y-o-y) to RM31.14 million from RM42.09 million, mainly due to the depreciation of the US dollar/ringgit exchange rates.
Lower profit margins because of a change in its product mix also impacted its earnings. Quarterly revenue slipped 6% y-o-y to RM343.2 million from RM365.74 million.
The group plans to pay an interim dividend of 2.5 sen per share on Sept 7, its stock exchange filing yesterday showed.
For the first half of FY18, Unisem’s net profit fell 57% to RM37.2 million from RM86.99 million, while revenue slid 8% to RM664.75 million from RM725.99 million.
Moving forward, Unisem said it is cautious due to the current trade war, protectionist policies and tariffs imposed by the US on imports from China, the European Union and other countries, and the retaliatory measures taken. While it is unaffected by these so far, it warned that any protracted impasse would adversely impact its operations.