United Industrial Corporation's revenue fell 12% to $711.5m

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United Industrial Corporation has announced its full year financial statement for the year 2012 last February 08.

Total revenue decreased by $94.0 million (12%) to $711.5 million due mainly to lower revenue from hotel operations, lower rental income and lower sales of trading properties.

Revenue from hotel operations decreased by $55.0 million (39%) to $86.1 million due to the closure of Pan Pacific Singapore hotel for major refurbishment from April to August 2012.

Gross rental income at $270.8 million was lower by $16.7 million (6%) with the absence of $16.9 million revenue contribution from UIC Building which was completely vacated by end 2011.

Sales of trading properties at $271.6 million was lower by $15.8 million (6%) due to lower contribution from The Trizon project which was completed in May 2012 and the absence of contribution from Park Natura project, completed in May 2011, partially offset by recognition of sales of The Excellency (Chengdu) residential property project.

Selling and distribution costs increased by $14.4 million (74%) to $33.8 million due mainly to the showflat, advertising and marketing expenses for the V on Shenton residential project which was launched for sale in July 2012.

Share of results of associated companies totalling $68.8 million (2011: $43.7 million) included share of fair value gain on investment property held by an associated company of $36.6 million (2011: $12.8 million).

Based on valuation by professional valuers as at 31 December 2012 on the investment properties held by subsidiary companies, a fair value gain of $247.3 million (2011: $21.4 million) was credited to the income statement.

In summary, net profit from operations decreased by $32.0 million (16%) to $168.2 million. After adding the fair value gain on investment properties, net of non-controlling interests, of $223.3 million (2011: fair value loss of $4.9 million), the Group's net attributable profit was $391.6 million (2011: $195.4 million).

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