Venture reports 1Q19 net profit rose nearly 9 percent on technology-segment growth

Singapore two-dollar billsSingapore two-dollar bills

Contract manufacturer Venture Corp. reported Thursday its first quarter net profit rose 8.6 percent on-year to S$90.9 million on broad-based growth in its technology portfolio and “solid execution of customers’ programs.”

“The increase is in tandem with the higher revenue despite pricing pressures and intense competition in the business environment,” Venture said. “The sustained profitability is driven by deep value creation through differentiated engineering capabilities and continuous lean initiatives to drive productivity gains, along with astute cost management.”

Revenue for the quarter ended 31 March increased 8.5 percent on-year to S$928.8 million, Venture said in a filing to SGX after the market close.

The net margin for the quarter was 9.8 percent, unchanged from the year-ago quarter, it said.

In its outlook, Venture said it was “vigilant” over macroeconomic concerns, including trade tensions and the global economic slowdown.

“These have led to a mixed business sentiment across the group’s diversified customer base,” the company said.

“Some customers’ product transitions might introduce near-term volatility to the group’s performance, but this will be mitigated by customers’ new product launches in the second half of 2019. Contribution from new customers won in past years is also expected to grow year-on-year in 2019,” it added.

 

Follow Shenton Wire on Telegram

Get the Shenton Wire morning briefing in your inbox