FRENCKEN GROUP LIMITED
ANNUAL REPORT 2014
12
BUSINESS REVIEW
(CONT’D)
Mechatronics Division
Business segment review
In FY2014, the Mechatronics Division recorded a 9.3%
increase in revenue to S$299.2 million from S$273.9 million
previously. This was driven principally by higher sales from the
semiconductor, analytical and medical segments.
The semiconductor segment witnessed strong sales growth
of 36.0% to S$69.1 million in FY2014 from S$50.8 million
previously. This is attributable to the operations in Asia
which serves the back-end of the semiconductor equipment
industry. The Europe operations focus mainly on front-
end semiconductor equipment. Sales derived from the
semiconductor segment are typically cyclical in nature.
The medical and analytical segments also registered revenue
growth of 11.9% and 11.5% to S$68.2 million and S$94.9
million respectively. The improved performances of these
segments were driven mainly by higher sales generated by the
operations in Europe.
Due to four consecutive years of revenue growth since
FY2011, the analytical segment accounted for the largest
proportion of the Mechatronics Division’s revenue in
FY2014 with a contribution of 31.7%. The semiconductor
segment contributed 23.1% while the medical segment
accounted for 22.8% of the division’s revenue.
Revenue from the industrial automation segment dipped as
a result of slower sales of hard-disk drive equipment during
the second half of FY2014. The industrial automation
segment’s sales are typically lumpy in nature.
As a result of improved profitability of the Asia operations,
the Mechatronics Division reported a higher net profit of
S$9.2 million in FY2014, compared to S$9.1 million in
FY2013.
MECHATRONICS DIVISION PERFORMANCE (FY2010 - FY2014)
Revenue ($’000)
2010 2011
2013
2012
2014
281,662
270,484
266,397
273,857
299,199
Operating Profit ($’000)
2010 2011
2013
2012
2014
26,037
11,879
19,533
11,152
12,796
