Press Release - Jurong Technologies Net Profit After Tax Jumps 106.9% To $6.7 Million In 2Q 2003; Announces Interim & Special Dividend Totalling 12.5%
SINGAPORE, 4 August 2003 – Singapore Exchange Main Board listed Electronics Contract Manufacturer Jurong Technologies Industrial Corpn. Ltd ("Jurong Technologies") today announced that its net profit attributable to shareholders soared 106.9% to $6.7 million for the second quarter ended 30 June 2003.
The profit growth was achieved on the back of a turnover of $99.3 million for 2Q03, a 19.6%-increase from $83.1 million over the comparative period last year, despite a seasonally weak second quarter which also experienced the impact of the Severe Acute Respiratory Syndrome ("SARS") epidemic.
The Group's net attributable profit in 2Q03 included an exceptional gain of approximately $2 million from the disposal of part of its share holdings in Min Aik Technology Co., Ltd upon its listing on the Taiwan Stock Exchange on 21 April 2003.
Earnings per share ("EPS") in 2Q03 rose to 1.70 cents compared with 0.82 cent in 2Q02, while Net asset value ("NAV") per share rose to 20.1 cents from 16.8 cents in 2Q02.
For the first half of the financial year ended 30 June 2003 ("1H03"), EPS was 2.85 cents compared to 1.57 cents for 1H02.
The Company declared an interim dividend of 10% (one-tier tax) per ordinary share or 1.0 cent, (which compared with 7.5% or 0.75 cent less tax at 22% in 1H02) and a special interim cash dividend of 2.5% or 0.25 cent, making a combined interim dividend of 12.5% or 1.25 cents. The 1.25 cents dividend will not, under the one-tier tax system, be subject to further tax.
The Group's net margin before exceptional item for 2Q03 rose to 4.7% from 3.90% for 2Q02 as a result of improved operational efficiency through optimisation of machine performance, continuous process improvement and cost control.
Jurong Technologies said turnover of its Hard Disk Drive ("HDD") division grew 18.6% to $67.4 million in 2Q03 from $56.8 million in 2Q02, while its non-HDD products saw a 21.3%-increase in revenue to $ 31.9 million in Q203 from $26.3 million.
Detailing the performance of Group by sector, Jurong Technologies President Mr. Lee Lok Fui said: "Typically, our unit volume in HDD sector for 2Q is marginally lower quarter to quarter due to seasonal factors. However on a year-on-year basis, the Group recorded a 50%-increase as our HDD customers significantly improved their market share resulting from the ongoing industry consolidation."
"Based on customers' projections, the unit volume for Printed Circuit Board Assembly products for the HDD sector is expected to increase 40-45% year-on-year. In addition, we expect continuous steady growth in our non-HDD sector which includes wireless communications and networking equipment," he said.
"The directors expect that with the projected continued growth in orders and a broadening customer base, the Group's performance in 3Q will be better than the corresponding period last year," said Mr. Lee.
The Company was awarded the Outstanding Supplier Awarded for 2002 for a record fifth time from Maxtor Corporation of the Untied States in February 2003.
(Note : The presentation slides for the second quarter results are enclosed.
Attachment available.
www.listedcompany.com/ir/jurongtech/web/
