Globetronics cautiously optimistic on outlook

  • Corporate News
  • Wednesday, 29 Jul 2020

Globetronics LED sensor process

PETALING JAYA: Despite the challenging market, Globetronics Technology Bhd is cautiously optimistic of achieving satisfactory results for the financial year ending Dec 31,2020.

The technology company said its confidence was based on its customers’ recent forecast and guidance.

“The group’s financial performance may continue to be impacted by the Covid-19 outbreak and the disruption in the global supply chain as we saw the collapse of economic activities arising from the implementation of movement control order (MCO), lockdown or stay-at-home order.

“The group has taken strong initiative to mitigate the exposure and disruption in the supply chain, ” Globetronics said.

The company announced yesterday that its net profit fell 38.3% to RM5.02mil for the second quarter ended June 30,2020, from RM8.1mil in the corresponding period last year, as its revenue fell 4.5% to RM44.9mil from RM47mil previously. Earnings per share slid to 0.75 sen from 1.22 sen.

For the quarter in review, Globetronics announced a dividend of two sen per share.

In a filing with Bursa Malaysia, it said the lower revenue and net profit achieved in the current quarter were mainly due to reduced volume loadings and supply chain inventory adjustment from most of its customers.

It was also attributable to the implementation of MCO and work-from-home order (50% workforce capacity), which resulted in lower economy of scale.

For the six months in review, Globetronics’ revenue rose 8% to RM98.8mil and its net profit was up 42% to RM15.9mil from RM91.1mil and RM11.2mil, respectively, in the corresponding period last year (increase of 8% and 42% respectively).

It said the improved revenue and net profit achieved in the current period were mainly due to higher volume loadings achieved from some of the group’s customers and better economy of scale achieved with volume linearisation strategy implemented together with some of its customer.

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