Newsroom
 
Source : Business Times Malaysia
Date : Nov 27, 2002
By : Noor Adzman Baharuddin
 
LKT Records RM5.4m After-Tax Profit

LKT Industrial Bhd has registered a RM5.4 million after-tax profit this year, a 50 per cent increase compared with RM3.6 million recorded during the same period last year.

The Bayan Lepas-based group specialises in the design and assembly of fully integrated automation systems, complete with equipment control software and robotics vision technology.

Executive chairman and chief executive officer Vincent Loh Khee Lian attributed the improved results to the company's ability to strengthen and consolidate its existing business and operations.

He said the success was achieved despite the generally gloomy environment faced by the global semiconductor sector, which had dragged on since 2001.

"We set our minds to persevere and took the necessary action. We're glad we've done it," he said after chairing the company's annual general meeting at LKT Plastic Technology Sdn Bhd, one of the group's seven companies, also based in Bayan Lepas, Penang.

Loh said LKT Industrial's ability to outperform some of its peers is because the company serves some of the world's top multinationals.

"When you are serving the number one, you must also be the number one in your respective field. When you can meet the stringent needs and requirements of the number one, you face no problems in serving the number two, three or the rest," he added

Citing an example, Loh said wholly-owned subsidiary LKT Automation Sdn Bhd won the coveted Preferred Quality Supplier 2001 Award from Intel, the world's largest producer of computer processors, in March this year.

He said the award, the first to be won by a South-East Asian equipment manufacturer, is proof of LKT Industrial's ability and commitment in delivering innovative products of the highest quality.

LKT Industrial was also recognised as one of 11 Best Local Vendors by the Penang Development Corp in August this year.

Earlier this year, LKT Industrial's Equipment Automation Division also received the Special Award for Product Excellence (Innovative Product) from the International Trade and Industry Ministry.

Recently, LKT Industrial succeeded in an arbitration case against its joint venture partners for breach of contract whereby the International Chamber of Commerce's International Court of Arbitration awarded it about RM24 million in damages, costs and interests.

To date, the group has received RM7.45 million and is seeking to enforce the remainder against its joint venture partners in the Netherlands, Australia and Hong Kong.

For the future, LKT Industrial is implementing RosettaNet, developing standard products for the global market and keeping tabs on China's rapid economic development as a business potential to promote its made-in-Malaysia hi-tech products and services.