KUALA LUMPUR (Aug 2): Semiconductor manufacturer Unisem (M) Bhd's net profit for the second quarter ended June 30, 2018 (2QFY18) slipped 26% year-on-year (y-o-y) to RM31.14 million from RM42.09 million, primarily attributable to the depreciation of USD/MYR exchange rates as compared to the prevailing rates in the previous year.

Earnings per share for the quarter fell to 4.26 sen compared to 5.74 sen a year ago.

In a filing with Bursa Malaysia today, Unisem said the lower earnings for the period were further impacted by the lower profit margins arising from change in its product mix.

Unisem managed to register a foreign exchange gain of RM10.02 million as opposed to the foreign exchange loss of RM9.95 million in the preceding quarter.

Quarterly revenue was 6% lower at RM343.2 million compared to RM365.74 million in 2QFY17.

It plans to pay an interim dividend of 2.5 sen per share on Sept 7.

For the cumulative first half of the year (1HFY18), Unisem's net profit more than halved to RM37.2 million from RM86.99 million, while revenue slid 8% to RM664.75 million from RM725.99 million.

Moving forward, Unisem is cautious of 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, which will eventually reduce global trade.

"Whilst the company is currently unaffected by these measures taken so far, any protracted impasse would have some adverse impact on our operations," it said.

"Barring a protracted trade war and a consequential deterioration in global trade, the directors expect the performance of the group to remain satisfactory for the remaining period to the end of the financial year," Unisem added.

At midday market break today, shares of Unisem dropped 5 sen or 1.88% to RM2.61 for a market capitalisation of RM1.91 billion.