United Engineers' profits crashed 36% to $53m in FY2018

The revenue of its property development division declined 81% due to the absence of contributions from two projects.

United Engineers’ profits crashed by 36% YoY to $53m in 2018 from $83m in 2017 as revenues from all of the company’s segments weakened, it said in its financial statement.

Profits attributable to shareholders also declined by 36% YoY to $55.8m, whilst revenue dipped 29% to $374.9m.

The property rental & hospitality segment also recorded a 5% decrease in revenue to $125.2m in FY2018 due to lower revaluation gains from investment properties and lower provision for rental support written-back.

The property development segment’s revenue dropped 81% to $25.8m in the absence of contributions from Chengdu Orchard Villa Phase 4 and Eight Riversuites in FY2018 as well as lower sales of units at Shenyang Orchard Summer Palace.

Engineering & distribution revenue also fell 20% to $108.1m, which is attributed to lower revenue contribution from distribution businesses and the absence of revenue contribution from the divested LPG business.

In the manufacturing segment, revenue fell 17% to $71.3m as demand went slower no thanks to US-China trade tensions.

The United Engineers board proposed a final ordinary dividend of 3 cents per share and a preference dividend of 7.5 cents per share that will be approved 27 May 2019.