UMS Holdings reports a 27% decrease in earnings y-o-y of $29 mil from weak performance in semiconductor segment

Nicole Lim
2-min read

This brings its earnings per share (EPS) to 4.32 cents in 1HFY2023 compared to 5.9 cents in 1HFY2022.

UMS Holdings Limited (UMS) has reported lower earnings of $29.0 million for the 1HFY2023 ended June, a 27% decrease from the same period last year.

This brings its earnings per share (EPS) to 4.32 cents in 1HFY2023 compared to 5.9 cents in 1HFY2022.

The group also recorded a lower revenue of $155.1 million, a 29% decrease y-o-y, as sales softened 9% compared to the same period last year.

The lower revenue was due to weaker performances of both the semiconductor and “others” businesses, partially offset by improved sales from its aerospace segment.

Revenue in the semiconductor segment fell 14% as global semiconductor demand remained soft while revenue in others plunged 48% mainly due to the weaker material and tooling distribution business affected by the general business slowdown.

The decline in semiconductor revenue was due to a 29% drop in component sales (from $43.6 million in 2QFY2022 to $31.0 million in 2QFY2023) caused mainly by the weaker demand from back-end semiconductor customers.

Aerospace sales, however, soared 48%, propelled by the robust recovery of the global aerospace industry.

The group’s bottom-line was also affected by higher expenses and lower other credit contributions. Depreciation expenses rose 28% due mainly to additional fixed assets.

Other expenses also went up 23% during the quarter, with machinery upkeep up 60% from more maintenance work, while utilities and professional fees increased 41% and 13% respectively.

Other credits plunged 78% compared to 2QFY2022 - due mainly to the lower foreign exchange gain which was partially offset by a higher gain from fixed asset disposal during the quarter.

However, despite the lower sales and earnings, the group’s cash from operations continued to  grow, hitting its highest ever first half year record of $45.1 million, up from $41.4 million in 1HFY2022.

First half free cash flow also surpassed $30 million to reach first half year high of $33.4 million (vs $29.2 million in 1HFY2022).

The group will be giving out an interim dividend of 1.2 cent per share, up from 1 cent per share given in the previous quarter.

Shares in UMS Holdings closed 2 cents lower, or 1.9% down at $1.03.

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