United Engineers 2017 profit dropped 36% to $89.57m

United Engineers profits dropped 36% YoY from $140.58m to $89.57m in 2017, mainly due to the absence of profit from its discontinued Multi-Fineline Electronix, Inc. operations. Profit from continuing operations increased 227% YoY to $89.6m.

According to its financial statement, revenue rose 12% YoY to $539.4m in 2017 from $479.7m in 2016 mainly due to higher revenue from property development, which was partially offset by lower revenue from other business divisions.

The share of profit from equity-accounted associates and joint ventures decreased 34% to $1.9 million in 2017 from $2.9 million in 2016 mainly due to lower contribution from a joint venture in Singapore arising from revaluation deficit from its investment property.

Property rental & hospitality operating profit jumped 62% to $126.1m mainly due to net revaluation gains of $44.4m from the Group’s investment properties and $16.8m reduction in the provision for rental support for UE Bizhub East. Property development revenue increased 106% to $146m mainly due to revenue recognition from Chengdu Orchard Villa (Phase 4) in China and The Manhattan in Malaysia following their completion in 2017.

Engineering & distribution revenue dipped 1% to $135.1m due to lower revenue from distribution businesses. Manufacturing operating profit before interest fell 19% to $5.4m.