MANUFACTURING | Staff Reporter, Singapore

Venture Corporation profits grew 8.6% to $90.87m in Q1

The broad-based growth in its technology domains and customer programme executions boosted earnings.

Venture Corporation’s profits jumped 8.6% YoY to $90.87m in Q1 2019 from $83.67m, an announcement revealed. Revenue was also up 8.5% YoY from $856.01m to $928.75m.

The strong start to the year was attributed to broad-based growth across the group’s portfolio of technology domains and solid execution of customers’ programmes. For Q1, the group recorded profit before tax (PBT) of $106.2m, an increase of 7.7% YoY. The increase is in tandem with higher revenue despite pricing pressures and intense competition in the business environment.

Also read: Can Venture Corporation recover and regain investor confidence?

“The sustained profitability is driven by deep value creation through differentiated engineering capabilities and continuous lean initiatives to drive productivity gains, along with astute cost management,” the firm said. In line with the higher PBT, Venture reported income tax expenses of $15.4m for the reported quarter.

The diluted earnings per share is at $0.0315 cents for Q1 2019, versus Q1 2018’s $0.0288.

Given macroeconomic factors, such as the protracted trade tensions and the global economic slowdown, these have led to a mixed business sentiment across the group’s diversified customer base, Venture said.

“Some customers’ product transitions might introduce near-term volatility to the group’s performance, but this will be mitigated by customers’ new product launches in the second half of 2019,” Venture highlighted, adding that contribution from new customers won in past years is also expected to grow YoY in 2019.  

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