FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
12
Mechatronics Division
Business segment review
The Mechatronics Division registered an 8.5% decrease in
revenue to S$273.7 million in FY2015 from S$299.2 million in
FY2014. This was due to lower sales from the semiconductor,
medical, analytical and other customer segments which were
affected by slower orders from customers owing to weaker
economic conditions in Europe and China, as well as the
unfavourable impact of the Euro’s depreciation vis-à-vis the
Singapore dollar. On the other hand, the industrial automation
segment reported higher sales in FY2015.
The semiconductor segment’s revenue eased 7.2% to S$64.1
million in FY2015 from S$69.1 million in FY2014 due mainly to
weaker demand for back-end semiconductor equipment.
Sales of the medical segment decreased 10.0% to S$61.4
million in FY2015 due mainly to slower orders experienced by
our Asia operations. Revenue derived from the analytical and
others segment also declined 11.7% and 43.4% year-on-year
to S$83.8 million and S$16.4 million respectively. This was due
mainly to slower sales at the Europe operations.
The industrial automation segment recorded a 26.7% increase
in sales, driven mainly by higher sales of production equipment
for storage drives and increased orders from a new customer in
the storage test equipment sector.
As a percentage of the Mechatronics Division’s total revenue, the
analytical segment recorded the largest revenue contribution of
30.6% in FY2015. This was followed by the semiconductor segment
which accounted for 23.4%, and the medical and industrial
automation segments which contributed 22.4% and 17.6%
respectively.
For FY2015, the Mechatronics Division recorded net profit of
S$8.9 million compared to S$9.2 million in FY2014. Excluding
exceptional items of S$1.5 million for FY2015 and S$0.2 million
for FY2014, the Mechatronics Division would have registered
a net profit of S$10.4 million in FY2015 compared to S$9.4
million in FY2014. The increase was attributed to lower
operating expenses and improved capacity utilisation at our
Asia operations.
MECHATRONICS DIVISION
PERFORMANCE
(FY2011 - FY2015)
BUSINESS REVIEW
(CONT’D)
Revenue ($’000)
Operating Profit ($’000)
299,199
2011
2013
2012
2014 2015
270,484
266,397
273,857
273,746
2011
2013
2012
2014 2015
11,879
19,533
11,152
12,796
13,453
