Globetronics falls 4.28% after 2Q net profit slumps 64%

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KUALA LUMPUR (July 27): Shares of Globetronics Technology Bhd fell 4.28% in early trade today after its net profit dived 64% to RM6.52 million for the second quarter ended June 30, 2016 (2QFY16) from RM17.93 million last year, as its Malaysia and Singapore segments saw lower sales and earnings.

At 9.26am, Globetronics fell 14 sen to RM3.13 with 987,100 shares done.

Revenue declined by 36% to RM57.41 million for the quarter from RM89.03 million a year earlier.

"The lower revenue and net profit were mainly due to lower volume loadings from some of the group's customers as a result of reduction in end customers' demand and forex (foreign exchange) loss recognised, amounting to RM4.7 million," said the group in a bourse filing.

For the first half of its financial year ending Dec 31, 2016 (1HFY16), net profit plunged 71% to RM10.2 million from RM35.08 million in 1HFY15, on the back of a 35% contraction in cumulative revenue for the period.