Prinsiptek 2Q pre-tax profit down 36.7%

KUALA LUMPUR: Prinsiptek Corporation Bhd posted a pre-tax profit of RM570,000 for its second quarter (2Q) ended June 30, 2010, down 36.67% from the preceding quarter.

The company said on Tuesday, Aug 24 that its 2Q revenue was RM50.42 million, up 6.30% from the same quarter a year ago, and up 55% from the preceding quarter's revenue of RM32.55 million.

While the increase in revenue is due to the higher turnover from the construction division, its projects with lower margin and unrealised exchange losses arising from advances to Thailand subsidiary companies contributed to the lower profits.

It expects the construction division to remain the main driver to its results in the next financial quarter as new local projects and overseas ventures are expected to be secured.

However, due to intense competition and rising material costs facing by construction and property industries, the construction and property markets are expected to be challenging in the near future.

Prinsiptek said it will focus on its core activities to enhance and strengthen the synergy among its group of companies.