Khoo Boon Hwee said consumer and information technology-related business will help Sunningdale Tech Ltd. see improved financial results in the second half of this year.
The Singapore-based injection molding company was awarded several projects in the last quarter of 2008 and the first quarter of 2009, CEO Khoo wrote in the company's annual report.
Many of these projects kick off in the second half, so we expect the first half to be relatively weak, and the second half to be stronger, he said.
The tainted milk scandal in China has resulted in an increase in orders for foreign manufacturers of infant formula.
We expect growth in this business segment. We also continue to receive enquiries for mold fabrication from customers in health care, Khoo said.
But he acknowledged that this year will be challenging.
Demand for automobiles was expected to be the lowest in several decades, as automakers, especially in the U.S., were cutting back production.
We expect the orders from the automotive business segment to be significantly lower than FY08, Khoo said.
Sunningdale ended 2008 with a net loss of S$97.5 million (US$65.91 million) compared to a net profit of S$12.1 million (US$8.18 million) a year earlier.
The company's 2008 sales dropped 5.2 percent to S$365 million (US$246.74 million) from S$385.1 million (US$260.25 million) for 2007.
Except for the mold fabrication business segment, contribution from all other business segments declined, Khoo said.