Broadway hit by $1.6m net loss in 3Q

Still better than previous quarters.

According to DBS, excluding forex and one-off items, Broadway reported net loss of S$1.6m, compared to losses of S$2.3m in 2Q13 and S$5m in 3Q12.

Here's more from DBS:

Results missed our S$2.5m profit forecast although sales were in line at S$165m (+21% y-o-y, +2% q-o-q). Gross margins were firm at c.8% but higher sales & admin costs as well as interest expense eroded net profit. More borrowings for capex investments led to a higher gearing of 0.78 from 0.67 in 2Q13.

HDD stabilising but other businesses less profitable. As HDD sales stabilised at around S$90m (-8% q-o-q, c.55% of group sales), losses at the EBIT level narrowed substantially to a mere S$0.1m from a loss of S$2.8m in 3Q12.

Elsewhere, the non-HDD segments were dragged down by higher start up costs for new mobile programmes while contribution from Foam Plastics shrunk because of a less profitable product mix.

2H rebound looks elusive. Broadway has met only 25% of our full year estimates as of 9M13. A 2H rebound would be challenging as HDD is expected to be flat for another year while non-HDD is taking longer to cultivate and the group’s move to right-size operations is progressing slower than desired.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia