SINGAPORE (Feb 17): United Industrial Corporation posts full year earnings of $286.0 million, increasing 10% from earnings of $260.6 million a year ago.
UIC recorded 28% higher revenue of $1.04 billion for the full year ended Dec 31, 2016, compared to $807.2 million in FY2015.
This was largely attributed to higher revenue recognition from residential properties sales.
Revenue from the sale of trading properties rose 77% to $516.3 million, mainly due to higher sales and progressive revenue recognition for UIC's residential projects such as V on Shenton and Alex Residences.
Finance expense fell 27% as a result of lower interest rates and reduction of borrowings.
Share of joint ventures' results decreased 96% to $1.1 million, mainly due to lower revenue contribution following the completion of joint venture residential projects Thomson Three and Archipelago.
Cash and cash equivalents stood at $86.5 million as at Dec 31, 2016.
UIC has proposed a first and final dividend of 3.0 cents per ordinary share.
Looking ahead, UIC says oversupply and technology disruption will continue to exert pressure on office and retail rentals, while the residential market will remain measured and depressed with cooling measures unchanged.
"Despite record number of visitors, the hotel market will continue to be challenging amidst a more difficult operating environment," it adds in its filing to SGX on Friday.
United Industrial Corp closed 2 cents lower at $2.98 on Friday.