Frencken Group has reported earnings of $9.9 million for its 3QFY2025, up 7.5% y-o-y. Revenue in the same period was up 6.5% to $211.5 million.
This brings its 9MFY2025 earnings to $29.8 million, up 9.1% and revenue up 12.5% to $642.8 million.
Frencken attributes the better numbers to higher contribution from its mechatronics division, the heavy lifting coming from 8.1% increase in revenue to $99.1 million for its semiconductor segment.
This business line enjoyed higher sales from the Asia operations, which benefited from a broader product portfolio and a recovery in demand in certain segments of the semiconductor equipment sector.
It enjoyed higher revenue too for its medical and industrial automation segments.
However, its analytical life sciences segment saw revenue drop by 8.3% y-o-y because of reduced government funding enjoyed by end users.
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Frencken warns that volatile geopolitical tensions continue to cast uncertainties on the outlook of the global economy.
It expects the near-term operating landscape to remain challenging due to the potential fallout on global trade and market demand, supply chain disruptions, inflation and foreign currency market volatility.
Frencken says that while its key mechatronics operations in Asia were able to enjoy continued recovery in revenue for its semiconductor business, the growth may not be sufficient to fully offset the short-term market softness of the analytical life sciences business in Europe this year.
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Its semiconductor business in Europe may also be undermined by a recalibration in order flow from a customer as it expects end-market demand to moderate following strong business over the past two years.
In light of these factors and the fluid macroeconomic backdrop, Frencken expects revenue for the current 2HFY2025 to be "marginally lower" over 1HFY2025.
Nevertheless, on a full-year basis, Frencken still expects revenue growth for FY2025 over FY2024.
Frencken Group shares closed at $1.54, down 3.14% for the day but up 32.76% year to date.
