SINGAPORE (Nov. 10, 2:10 p.m. ET) — Sunningdale Tech Ltd said it has managed to increase revenue by 3.2 percent year-on-year to S$110.2 million (US$85.37 million) in the third quarter of this year despite ending some projects and the U.S. dollar and euro weakening against the Singapore dollar.
But the January-September 2011 revenue declined 1.6 percent to S$306.72 million (US$237.57 million).
The third quarter attributable profit was up by 40 percent to S$4.23 million (US$3.28 million) but the accumulated nine month attributable profit declined by 27.7 percent to S$11.43 million (US$8.85 million or CNY56.3 million).
The business environment continues to be extremely challenging, cautioned Sunningdale Tech.
“Orders for the automotive business declined marginally as some existing projects came to end of life and mass production for new projects was delayed,” it said.
Consumer/information technology revenue declined marginally due to lower orders from one major customer which was partially, but not completely, offset by increased orders from another major customer, said Sunningdale Tech.
“The group's fastest growing healthcare business remains on track and the tool fabrication business also remains stable and strong,” it said.
“We expect the business environment to remain extremely challenging for the rest of the year and into 2012.
Volatility in foreign exchange rates and rising raw material prices, together with pricing pressure from customers, threaten to squeeze margins,” it said.
The debt crisis in Europe and a slow growth scenario in the US would also dampen top line revenue growth, it said.