Venture’s profit plummets 27% to S$35.4m in 3Q11

Its revenue was 13.9% lower as volume sales of its networking & communication segment declined in the third quarter.

Venture Corporation Limited recorded revenue of S$583.6 million for the quarter ended 30 September 2011. On a year-on-year basis, revenue was 13.9% lower, largely attributed to the year-on-year USD/SGD depreciation of approximately 11.0%.

For the reported quarter, the Computer Peripherals & Data Storage, Retail Store Solutions & Industrial Products and the Test & Measurement/Medical/Others segment registered year-on-year volume growth. However this was not sufficient to offset the volume decline in the Networking & Communications and the Printing & Imaging segments.

For the nine months ended 30 September 2011, the Group reported revenue of S$1,799.9 million, a decline of 8.7% over the corresponding period of the preceding year.

The Group recorded a net profit of S$35.4 million for the quarter ended 30 September 2011. The net profit for the corresponding quarter of the prior year was S$48.6 million.

Diluted EPS was 12.9 cents for the quarter ended 30 September 2011 compared to 17.7 cents for the corresponding quarter of 2010.

For the nine months ended 30 September 2011, net profit of the Group was S$118.5 million or 43.2 cents per share on a fully diluted basis.

The Group achieved a net margin 6.1% for the reported quarter and a year-to-date net margin of 6.6%.

The Group registered improvement in cash flow generation for the reported quarter. Cash generated from operations amounted to S$103.5 million for the quarter ended 30 September 2011 compared to S$60.2 million recorded for the corresponding quarter in 2010. On a nine-month basis, cash from operations amounted to S$174.3 million, an improvement of S$107.5 million over the comparable period of the preceding year.

As at 30 September 2011, cash and cash equivalent balances stood at S$437.0 million. Excluding bank loans of S$204.3 million, the Group remained net cash positive at S$232.7 million.

The working capital of the Group was S$668.2 million as at 30 September 2011. This comprised of S$429.4 million Trade Receivables, S$311.7 million Trade Payables and S$550.5 million of Inventories.

Total shareholders’ equity of the Group amounted to S$1.8 billion and the Net Asset Value per share was S$6.58 as at 30 September 2011.