Semi-Tech endures 17pc profit decline

PUBLISHED : Thursday, 28 May, 1998, 12:00am
UPDATED : Thursday, 28 May, 1998, 12:00am

Net profit at electronics group Semi-Tech (Global) fell 17.8 per cent to US$36.8 million during the year to January 31.

The firm recorded a net exceptional gain of $28.9 million. This was after exceptional losses worth a combined $31 million due to relocation expenses, write-off of receivables, provisions for one-off product warranty expenses and losses on the disposal of subsidiaries.

Profit from consolidated operations dropped 13.1 per cent to $56.2 million, against $64.7 million in the same period last year.

Turnover, at $1.44 billion, was about the same as the previous corresponding period.

The company said the effects of the Asian economic downturn and the currency and debt crisis during the second half of last year had minimal impact on sales because sales to the region were negligible.

Prices of consumer electronics goods had come under pressure as competition intensified.

The company yesterday said it intended to put forward a proposal to its shareholders for the adjustment of the nominal value of its shares by cancelling paid-up capital to the extent of the issued shares of the company.

The credit arising from the adjustment proposal would be transferred to the contributed surplus account of the company, it said.