JCY extends loss in 2Q

by **Cals** Wed 22 May 2013, 19:57

JCY extends loss in 2Q
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 22 May 2013 19:32

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KUALA LUMPUR (May 22): Electronics component manufacturer JCY International Bhd extended losses to its second quarter. The company blamed the loss on lower sales and higher operating costs compared to a year earlier.

In a filing with Bursa Malaysia, JCY reported its net loss for the second quarter ended March 31, 2013 (2QFY13) at RM20.78 million on a revenue of RM401.42 million.

In the previous corresponding quarter, it netted a profit of RM163.09 million on the back of RM576.58 million in revenue.

“This (loss) was due mainly to the lower revenue and higher operating costs for the reporting quarter as a result of lower output caused by reduction in global demand for the hard disk drive (HDD) and resumption by other suppliers of the mechanical components of the HDD after the Thailand floods.

“In addition, our customers have also tightened up their quality requirement and this has resulted in lower yields for our output, our cost of sales has increased accordingly for the periods under review,” JCY explained in the filing.

For the two cumulative quarters, JCY has lost RM46.51 million on a revenue of RM778.25 million. In the previous corresponding period, the company made a net profit of RM325.54 million on a revenue of RM1.14 billion.

Going forward, the company said it will step up its automation process to minimise its reliance on manual labourers, apart from emphasising on productivity improvement.