Globetronics Upbeat On Sales Print E-mail

Source : New Straits Times (May 19, 2011)

GEORGE TOWN: Globetronics Technology Bhd is looking at "good" first and second quarters this year, despite the recent earthquake and tsunami in Japan.

Chief executive officer Heng Huck Lee said although 40 per cent of its total RM280 million sales were to Japanese manufacturing companies, things are looking optimistic for the Bayan Lepas-based integrated circuits manufacturer, which is engaged in the energy-saving and environmental LED lighting market and crystal-based timing devices.


Heng said Globetronics is on track to achieve its projected growth and progress in the LED lighting and timing device markets for the first two quarters of 2011.

"We are optimistic about enjoying another good year, although we are cautious due to the unrest in the Middle East and Africa, and also the recent disaster in Japan, among others.

"Until now, we have suffered only minimal impact from the Japan disaster but as a key component manufacturer in the global supply chain, we must also consider direct and indirect effects as well, like the possibility of other suppliers in the chain not being able to deliver the goods on their side for the end products," he said after annual general meeting here yesterday.

Therefore, Heng said, there might be uncertainties such as possible product cancellations by end-customers during the third and fourth quarters of the year, even though most of the company's Japanese clients did not operate around the Fukushima area and had outside plants, where they could move some of their operations to.

Globetronics closed its 2010 year with revenues of RM279 million and RM30 million net profit, improvements of 28 per cent and 88 per cent respectively compared to 2009's numbers.

The group spent a record RM107 million in capital expenditure in the growing LED lighting and timing device industries, compared to the RM95 million invested in 2008 and 2009.

Heng said Globetronics would be slowing down on its capital expenditure after having spent over RM200 million in the past three years.

Last year, it made three dividend payments totalling RM17.8 million to shareholders, and managed to close the year with over RM55 million in cash and other investments.

He said the group is optimistic that such a performance would be sustained for this year.

Heng noted that as part of its corporate social responsibility, it had recently donated 2.5 million yen (RM93,548.98) to the Japanese Red Cross Society to help victims of the twin disasters.