THE net profit of semiconductor and machine manufacturer Frencken Group : E28 -1.82%dipped 35.1 per cent in the third quarter (Q3) ended Sep 30 to S$7.1 million, from S$11 million in the same period last year.

 

Its revenue declined 5.6 per cent year on year to S$184.4 million, with the gross profit margin falling to 12.4 per cent from 13.7 per cent in Q3 2022.

 

The group has two main divisions &ndash mechatronics and integrated manufacturing services.

 

The revenue of the mechatronics division (comprising the semiconductor, medical, analytical and life sciences, and industrial automation segments) fell 5.8 per cent to S$159.5 million.

 

That for the semiconductor segment decreased 10.5 per cent to S$74.6 million the increased sales in Europe from a key customer proved insufficient to make up for the lower sales registered in Asia as a result of an industry slowdown.

 

The revenue for the medical segment rose 19.5 per cent on higher sales to a significant customer in Europe the revenue for the analytics and life sciences segment grew 22.4 per cent to S$42.9 million, thanks to higher sales in both Europe and Asia.

 

The industrial automation segment&rsquo s revenue decreased 63.5 per cent to S$6.8 million. The company said it was because it was &ldquo dependent on a key customer&rsquo s capital expenditure requirements&rdquo .

 

The integrated manufacturing services division&rsquo s revenue fell 6.5 per cent to S$24.3 million as a result of lower sales of its automotive and consumer and industrial electronics segments.

 

The group said it expects revenue to remain stable in H2 2023, relative to H1 2023 it expects the semiconductor, medical, analytical and life sciences segments to post increased revenue, despite a forecasted decrease in revenue from industrial automation.