GuocoLand posts $162,000 net profit in Q3

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On April 23, 2012
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Business Times: Sat, Apr 21

GUOCOLAND swung to a net profit of $162,000 for its third quarter ended March 31 from a net loss of $920,000 a year ago.

This came as revenue for the quarter rose 16 per cent to $104.5 million, mainly due to higher revenue recognised from the group’s Singapore residential projects, the real estate developer said.

The group also benefited from lower administrative and other general expenses, but finance cost increased $6.1 million mainly due to higher borrowings.

Net profit for the nine months ended March 31 was $198,000, down from $79.3 million previously. This was mainly because revenue from the sale of the group’s uncompleted projects in China was not recognised with the adoption of accounting rule FRS 115. Revenue for the nine months declined 39 per cent to $358.8 million.

Earnings per share (EPS) for Q3 2012 was 0.01 cent, compared with a loss per share of 0.08 cent a year ago. Nine-month EPS was 0.02 cent, down from 8.41 cents previously.

Sentiment for residential properties in Singapore and China, particularly for the luxury sector in Singapore, has been dampened by various cooling measures and weaker growth forecasts announced in both countries, GuocoLand said when giving its outlook.

“The uncertain global economic outlook further adds challenges to the business environment in these markets. The group remains confident of the long-term prospects in both countries,” it said.

Barring unforeseen circumstances, the group said it expects to remain profitable for the financial year ending June 30, 2012.

GuocoLand shares closed down 2.5 cents at $1.83 yesterday.

Source: Business Times © Singapore Press Holdings Ltd

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