CSC rakes in $224M revenue for first nine months of FY10

Geotechnical engineering specialist CSC Holdings has reported a net profit of $19.8 million on revenue of $224.0 million, for the nine months ending 31 December 2009.

In the 3rd quarter of FY10, CSC business activities improved as compared to the 2nd quarter even as revenues for the first nine months fell by 51.0 percent to $224.0 million in light of the global financial crisis.

A number of construction projects were delayed owing to unstable market conditions and availability of funding in 2009. Declining contract prices in the 3rd quarter also resulted in lower Gross Profit Margins (GPM) recorded in the same quarter.

Despite this, overall GPM for the nine months registered a slight improvement to 18.0 percent, from 17.1 percent in the previous year during the same period, largely due to better GPM recorded in the first half of the current financial year.

CSC also concluded the third quarter with profit after tax of $5.0 million and total shareholder's equity standing at $183.1 million, which is 8.4 percent higher compared to 31 March 2009.

At the close of the first nine months, cash and cash equivalents stood at $30.2 million.

The figures have admittedly not been encouraging, with construction demand in 2009 dipping from its 2008 levels.

Private sector demand remained weak in 2009, while public sector projects led by various major civil engineering projects driving construction demands last year.

The group however believes that in 2010, more infrastructure projects in the pipeline can be expected, requiring a considerable amount of foundation works.

On a more positive development, CSC's overseas venture has begun to bear fruit. In Malaysia, for example, some of the group's notable foundation-related project gains include Neo Damansara, a mixed commercial project; Plaza 33 in Petaling Jaya; the Kuala Lumpur General Hospital extension and the Hospital University Kebangsaan Malaysia at Cheras.

The company's Board of Directors remains optimistic that the remaining quarter of the financial year will be profitable, as it continues to seek opportunities in Vietnam and Malaysia.

The group's order book as of February this year stood at approximately $127 million, from $107 million in November 2009.