Triyards Holdings' profit takes a 73% nosedive to $3.07m

Recovery may take some time, said analyst.

Triyards Holdings reported a 7% YoY rise in revenue to US$94.2m ($131.32m) but saw a 73% drop in net profit to US$2.2m (S$3.07m) in 4QFY16, impacted by a US$1.7m (S$2.37m) impairment for its Houston facilities.

On a full year basis, net profit fell 34% to US$17.8m (S$24.81m).

Stripping out the impairment and one-off items, OCBC Investment Research estimates core net profit to be S$4.5m in 4QFY16, such that the full year figure of S$19.5m made up about 97% of its full year estimates, in line with expectations.

Unlike many of its peers, Triyards has managed to remain profitable in this tough environment, supported by its diversified order book and forward-looking management.

But, OCBC Investment Research still lowered its earnings estimates as industry recovery may be longer than expected given a still weak global economy, and margin pressure could continue to persist.