Tuesday 19 November, 2019

Jetcon 2Q profit down, but outlook positive

Barring any unfavorable developments, Jetcon expects the third quarter to be its strongest quarter once again.

Barring any unfavorable developments, Jetcon expects the third quarter to be its strongest quarter once again.

Pre-owned car dealership, Jetcon Corporation Limited experienced a dip in pre-tax profit of 10 per cent to $38.4 million in the second-quarter ended June 2018 versus $42.9 million in 2017. 

The company revenues were $299.5 million compared to $294.5 million in the corresponding quarter in 2017 or a 1.7 per cent increase.

Higher costs contributed to the lower profit.

"We note that the decrease in profit stems from a sharp increase in cost of sales, owing partially to a rise in shipping costs due to a return to shipping via Ro-Ro ships, and also a rise in costs in preparing vehicles for delivery," said Jetcon.

Inventory of motor vehicles and parts increased by 19.4 percent since June 2017, to reach $414.8 million, a continuing deliberate strategy to increase choice for customers and sales, heading into third-quarter, historically the company's strongest quarter in sales, aided by the usage of the new Special Economic Zone, said Jetcon.

Total receivables amounted to $54 million which include amounts deposited with suppliers for goods. Despite the slight decrease in profits for this quarter, the first half of 2018 is still ahead of the same period for 2017.

Barring any unfavorable developments, Jetcon expects the third quarter to be its strongest quarter once again.

The company paid out a dividend of 3.5 cents per share on July 25.

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