reporter2
09-05-12, 23:51
http://www.straitstimes.com/Money/Story/STIStory_794525.html
SC Global expects to post $10m loss for Q1
Published on May 2, 2012
LUXURY property developer SC Global has warned that it expects to see a loss in the first three months of the year, as the high-end property market continues to slow.
In a filing with the Singapore Exchange, SC Global said it is expecting to post a loss of $10 million, a sharp reversal of the $72.8 million profit it earned in the same period last year.
The firm said the main reason for the loss was that it will have lower sales and revenue recognition from some of its recently completed projects.
Sentiment in the residential market has remained cautious, and the latest property cooling measures will have to be monitored over the longer term, the company added.
The Government in December put in place new rules on stamp duties that targeted foreigners and analysts have said this has affected the high-end property market the most.
SC Global also said new accounting rules prevent revenues earned from overseas projects to be reflected in the firm's books until they have been completed.
Previously, firms could recognise revenues and profits before the project was completed.
But the firm said its business is long term in nature and that it 'manages its business in this manner rather than from quarter to quarter'.
The firm posted profits of $132.2 million last year and $92.9 million in 2010, figures it said were 'significant'.
Similarly the firm said its cash position was also 'healthy', with the group holding on to $222.3 million in cash and equivalents.
SC Global will release its full financial statement sometime early this month, it said.
Another firm, concrete maker China Yongsheng, also said it expects to see a loss in the first three months of the year.
This is because 'the first-quarter results of the group are traditionally weaker', said the Chinese firm.
AARON LOW
SC Global expects to post $10m loss for Q1
Published on May 2, 2012
LUXURY property developer SC Global has warned that it expects to see a loss in the first three months of the year, as the high-end property market continues to slow.
In a filing with the Singapore Exchange, SC Global said it is expecting to post a loss of $10 million, a sharp reversal of the $72.8 million profit it earned in the same period last year.
The firm said the main reason for the loss was that it will have lower sales and revenue recognition from some of its recently completed projects.
Sentiment in the residential market has remained cautious, and the latest property cooling measures will have to be monitored over the longer term, the company added.
The Government in December put in place new rules on stamp duties that targeted foreigners and analysts have said this has affected the high-end property market the most.
SC Global also said new accounting rules prevent revenues earned from overseas projects to be reflected in the firm's books until they have been completed.
Previously, firms could recognise revenues and profits before the project was completed.
But the firm said its business is long term in nature and that it 'manages its business in this manner rather than from quarter to quarter'.
The firm posted profits of $132.2 million last year and $92.9 million in 2010, figures it said were 'significant'.
Similarly the firm said its cash position was also 'healthy', with the group holding on to $222.3 million in cash and equivalents.
SC Global will release its full financial statement sometime early this month, it said.
Another firm, concrete maker China Yongsheng, also said it expects to see a loss in the first three months of the year.
This is because 'the first-quarter results of the group are traditionally weaker', said the Chinese firm.
AARON LOW