JCY posts net loss RM31.8m in 3Q

KUALA LUMPUR: JCY International Bhd posted net loss RM31.86 million in the third quarter ended June 30, 2011 compared to net profit RM55.59 million a year earlier due mainly to higher raw material prices, inventory provision from a depreciating US dollar and slow moving stocks.

The hard-disk drive manufacturer said on Monday, Aug 22 revenue for the quarter fell 17.8% to RM395.17 million from RM480.79 million a year ago. Loss per share was 1.56 sen compared with earnings per share of 2.72 sen.

For the six months ended June 30, JCY posted net loss RM11.89 million compared with net profit of RM198.94 million in 2010. Its revenue was RM1.23 billion compared with RM1.56 billion a year ago.

Reviewing its performance, JCY said an added factor that impacted its financial results was that a shortage of workers affected the production output and increased the cost of the direct labour.

On its prospects, JCY said the sovereign country debt problems in Europe and the US may slow down the global economic recovery.

“The demand for HDD is also affected by media tablets. Nevertheless the global demand for storage capacity is increasing due to demand from cloud service providers, data centres and other network content providers.

“The group will continue to intensify its efforts to improve operational efficiency and cost management,” it said.