FRENCKEN Group : E28 -0.61% on Monday (Aug 14) posted a 53.8 per cent drop in net profit to S$12.1 million for the first half ended Jun 30, from S$26.1 million in the same period last year.

 

Its net profit fell despite lower income tax expenses and selling and distribution expenses, as the semiconductor player booked lower revenue and higher finance costs.

 

The results translate to earnings per share of S$0.0283, down from S$0.0612 in the same period last year.

 

Revenue, meanwhile, stood at S$351 million for the half-year period, down 9.7 per cent year on year from S$388.9 million. Both the group&rsquo s mechatronics and integrated manufacturing service (IMS) divisions recorded drops in revenue.

 

The group&rsquo s mechatronics division posted a 10.9 per cent drop in revenue to S$303.2 million, with the semiconductor and industrial automation segments leading declines.

 

The semiconductor business recorded a 19.7 per cent fall to S$122.7 million. The group noted softness in this segment despite higher sales in Europe during the half-year period, supported by higher orders from a key customer.

 

As for the industrial automation segment, revenue fell 38.8 per cent on the year to S$35.1 million.

 

&ldquo Sales of this segment are typically lumpy and dependent on the capital expenditure of a key customer,&rdquo said Frencken.

 

Revenue for its IMS division eased 4.5 per cent to S$46.3 million as sales from the automotive segment were lower on the year.

 

The group&rsquo s finance costs rose 99.6 per cent to S$2.9 million for H1. Selling and distribution expenses fell 13 per cent to S$5 million, and administrative and general expenses were 4.7 per cent lower at S$24 million. Income tax expenses dropped 34.4 per cent at S$3.9 million.

 

No dividend was declared for the half-year period, unchanged from the year before.