CSC Holdings says gross profit fell to $5.5 million for the three months ended 30 June 2011 (1Q12) from $9.3 million in the corresponding period a year ago (1Q11) despite posting a revenue rise.
Revenue rose 8.8% year-on-year to $84.5 million for 1Q12 from $77.7 million in 1Q11 due to a higher level of business activities and positive contributions from its industrial property development, the Westpoint Business Hub at Tuas.
Other Income more than doubled to $2.3 million in 1Q12 from $1.1 million in 1Q11, mainly due to the recognition of $1.0 million in negative goodwill from the group’s acquisition of a 70% stake in ICE Far East and its subsidiary (ICE Group) during the quarter.
Despite the growth in its top line, CSC says the rising prices of raw materials and increases in foreign worker levies have chipped away at margins. The group also endured some margin erosion from the interruption of work and delays in certain projects not within our control. As a result, the group’s 1Q12 gross profit fell to $5.5 million from $9.3 million in 1Q11.
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