UMW first quarter earnings up by 17%
PETALING JAYA: UMW Holdings Bhd’s net profit for its first quarter ended March 31 rose 17% to RM86.50mil from RM74.08mil in the previous corresponding period, driven by the better performance of its automotive and manufacturing and engineering (M&E) segments.
Revenue in the quarter grew to RM2.77bil from RM2.42bil a year earlier, the company said in a filing with Bursa Malaysia yesterday.
“The group posted a profit before taxation from continuing operations of RM140.7mil for the current quarter compared to RM154.3mil in the same quarter of the previous year. The decrease was mainly due to a lower performance from the automotive and equipment segment.
“Discontinued operations posted a marginal loss before taxation of RM100,000 compared with a loss of RM30.7mil in the same quarter of the previous year. The lower loss in oil and gas (O&G) unlisted was mainly due to its scaled-down operations in line with the divestment strategy of the (O&G) segment.”
On the performance of its automotive segment during the first quarter of this year, UMW said the segment registered a revenue of RM2.16bil, which was 15.2% higher than the RM1.88bil reported in the previous corresponding quarter.
“The improved revenue was due to a higher number of vehicles sold in the first quarter of 2019. Notwithstanding the higher revenue, profit before tax was marginally lower by RM1.7mil to RM124.2mil due to higher depreciation, which was partially offset by better performance from an associated company.”
The group’s M&E segment saw its revenue surging 40.7% to RM237.1mil in the quarter.
“The improved revenue was contributed by the aerospace business from ramping up fan cases delivery and increased sales in the auto component business,” the company said.
In a statement, UMW president and group chief executive officer, Badrul Feisal Abdul Rahim, said the group would continue to strengthen its presence in the automotive market, especially with its new state-of-the-art assembly plant.
“Since commercial production began in January, we have introduced the all-new Toyota Vios and Toyota Yaris with a high local content to be more competitive in the market. The revival of the major infrastructure projects is expected to spark optimism in the equipment segment as demand increases.
“In the M&E segment, KYB-UMW will commence its plant modernisation activities to meet increasing demand, while we continue to ramp up production of fan cases for Rolls-Royce. We also see potential to explore and penetrate more markets in Asean for our very own Grantt brand of lubricants.”
Source: TheStar