Venture Corp. reported Friday its third quarter net profit rose 5.5 percent on-year to S$85.20 million, missing CGS-CIMB’s forecast for S$90.4 million.
Revenue for the quarter ended 30 September increased 12.8 percent on-year to S$869.13 million, the contract manufacturer said in a filing to SGX.
“In the third quarter of 2019, Venture delivered a creditable set of results. Revenue and profit have improved year-on-year amidst the U.S./China trade and tariff war, Brexit, currency volatility and other headwinds,” the company said in the statement.
“Notwithstanding competition and pricing pressure, the group’s continued initiatives to drive productivity gains and operational efficiency
kept net margin healthy at 9.8 percent for the third quarter,” Venture said. The net profit margin in the year-ago period was 10.5 percent, the filing said.
Depreciation and amortization expense rose 30.7 percent on-year to S$10.11 million on changes to accounting for leases, Venture said.
Research and development expense fell 54.6 percent on-year to S$8.49 million on lower customer requirements for prototyping, tooling, non-recurring engineering, materials and related services, Venture said.
The foreign currency exchange gain jumped to S$3.04 million from S$684,000 in the year-ago period, Venture said.
For the nine-month period, Venture reported net profit increased 1.7 percent on-year to S$266.88 million on revenue of S$2.70 billion, up 4.8 percent on-year.
In its outlook, Venture pointed to its ability to capitalize on the U.S. trade war.
“Over the next 12 months, some uncertainties in the business and geopolitical environment may remain unabated. Venture continues to see some hastened efforts to shift supply chain flows by OEMs for tariff mitigation. The group does take advantage of these shifts to render support to its partners,” the company said.
“Venture will be supporting several partners in their new and key product launches over the next 12 months. More importantly, the group expects to see traction in its entries into new technology domains and ecosystems,” the company added.