CWT expected to book $120m in FY14

It’s on track for record earnings.

Mainboard-listed integrated logistics and supply chain firm CWT is on track for record earnings in FY 14, backed by strong growth in its logistics segment and an impressive performance from its financial services segment.

According to DBS, the firm’s earnings as at 9M14 grew by 52% year-on-year to $98m, making up 82% of its FY14 forecast.

CWT is expected to book divestment gains from the potential disposal of its 835,000-sq ft Hub 3 warehouse in 2015.

“CWT could book a one-off gain of at least S$60m to S$65m in 2015, with a similar amount to be booked and amortised over the lease-back period, which will further help profits in 2016 and beyond. Meanwhile, work will soon commence on the redevelopment of a 2.4m-sq ft warehouse at 47 Jalan Buroh, which is slated for partial completion end-2016, and full completion in 2017, underpinning longer-term earnings prospects for the Group,” stated DBS.