Friday 29 Mar 2024
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KUALA LUMPUR (May 21): SAM Engineering & Equipment (M) Bhd said today that its fourth quarter net profit rose 45% to RM22.44 million from RM15.5 million a year earlier, on higher aerospace revenue and after the company's equipment segment registered gain on disposal of land and buildings.

In a statement to Bursa Malaysia, SAM said group revenue climbed to RM195.76 million in the fourth quarter ended March 31, 2019 (4QFY19) from RM168.53 million, on higher income from its aerospace segment.

"The higher revenue from the aerospace segment was due to the sales of casing products for new aircraft platforms — A320neo and B737max, and pull in by customer for business jets and increase in production for aerostructures products for A320neo, offset by lower deliveries of casing products for older aircraft program, lower sales of prismatic parts and unfavourable foreign exchange translation. 

"The increase in group profit before tax of RM2.0 million was attributable to the higher profit contribution from [the]equipment segment of RM3.8 million, due to net gain on disposal of land and buildings of RM7.3 million," SAM said. 

For the full year (FY19), SAM said cumulative net profit rose to RM78.51 million from RM62.92 million a year earlier. Revenue was higher at RM754.97 million, versus RM618.96 million in FY18.

Looking ahead, SAM said it expects revenue from the aerospace industry, which accounts for about 61% of group revenue, to remain stable. 

"We expect the revenue from the equipment business to decrease for the next quarter, due to softer demand from customers (in the) semiconductor (industry). However, we expect the demand from the hard disk drive storage segment to increase next quarter," SAM said.

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