Malaysian company Boustead Heavy Industries Corporation (BHIC) has partly attributed annual declines in revenues and profits to the country’s falling defence budget.
The company said in a filing to the Bursa Malaysia stock exchange on 27 February that its revenues in fiscal year (FY) 2017 fell year on year by 10% to MYR277.6 million (USD70.6 million) while pre-tax profit tumbled 86% to MYR11.7 million.
Defence sales represented 97% of revenues, with commercial manufacturing and energy accounting for the remainder. BHIC’s FY 2017 profit from defence was MYR70 million, but this was offset by losses in other sectors.
BHIC added that the majority of FY 2017 defence sales were derived from military-related maintenance, repair, and overhaul (MRO) activities.
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