Vietnam’s Coteccons reports 2019 profit decline at almost 53%

The construction company’s fourth quarter after-tax profit fell 27% to $9.9 million in $318 million revenue, a decrease of 4.5% from a year ago.

Since the third quarter of 2018, this is the fifth consecutive quarter CTD reported decline in profits.

Fourth quarter revenue decreased due to the general difficult situation of the construction industry. There were several construction projects faced suspended or implemented at snail-pace. The competition between construction enterprises was harsh due to limited project.

The company implemented 88% of revenue plan and 69% of profit after tax plan for 2019, with $30 million after-tax profit, down 53% from a year earlier. The company saw over $1 billion revenue, down by 17% from 2018. Basic earnings per share was reported at $377 million, down 52%.

Gross profit decreased because some projects had longer construction time than expected, increasing fixed costs, and the company had to reduce prices in bidding with investors.

Periodically, the first and fourth quarters are usually the low season, when the business results of construction enterprises go down. This year, the first and fourth quarters enjoyed a higher profit than two quarters of previous year, company said.

By the end of 2019, company’s total assets decreased by $26.6 million to $689.5 million. On the market, CTD shares is traded at VND53,500 ($2.28) per share.

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