FAR East Aluminium (Holdings) has weathered the worst of the downturn in aluminium demand and is set to achieve brighter earnings this year, according to chairman and managing director, Pang Shek-nam.
For its fiscal year ending December 31, 1993, the group registered a 90 per cent drop in profit to $3.2 million, while turnover declined by 4.2 per cent to $238 million over the previous year.
''Last year was a difficult year for the construction industry in Hong Kong and the company's setback in profitability reflects the adverse operating environment of the industry,'' Mr Pang said at the group's annual meeting yesterday.
He said the aluminium industry was dependent on market conditions. During a construction boom, the group could achieve a higher profit margin because it could afford to choose from a number of projects.
But during a slump, when there were many contractors vying for one contract, its margin would be severely squeezed.
The group, however, did not under-bid to win contracts, Mr Pang said.
