Favelle Favco posts lower Q1 earnings, order book at RM521mil


  • Corporate News
  • Wednesday, 17 Jun 2020

KUALA LUMPUR: Construction crane maker Favelle Favco Bhd warned of a challenging outlook this year after earnings fell by almost a fifth in the first quarter as the pandemic outbreak disrupted sales.

Net profit in the three-month ended March 31 declined 19.4% to RM11.9mil compared with RM14.78mil made a year ago.

Revenue dropped to RM144.6mil from RM156mil previously, it said in a filing with Bursa Malaysia today.

The group has an outstanding order book of approximately RM521mil as at June 11 from the global oil and gas, shipyard, construction, wind turbine industries and intelligent automation.

This includes RM73mil job involving intelligent automation.

"The Group will also increase the tower crane rental fleet in order to improve the rental income globally," it said.

Favelle Favco said the overall market situation remained unpredictable for now as nations worldwide are putting in place respective responses to contain the Covid-19 pandemic and introducing both monetary and fiscal stimulus packages to support the economy and prevent from catastrophic recession.

"The Group will be taking appropriate measures and actions to cater for its business undertaking moving forward," it said.

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