Shah Alam, 30 Aug 2013 – UMW Holdings Berhad announced today that its Group revenue of RM3,499.2 million for the second quarter ended 30th June 2013 was lower than the RM4,108.9 million registered in the preceding year’s corresponding quarter by 14.8%. This was due to the lower contribution of revenue from the Automotive, Oil & Gas and Equipment segments.
Consequently, the Group profit before taxation of RM443.2 million for the second quarter ended 30th June 2013 reduced by 14.2% compared to RM516.8 million registered in the same quarter of 2012. This was mainly due to lower contributions from the Automotive, Equipment and M&E segments but offset by higher profit contribution from the Oil & Gas segment.
The net profit attributable to equity holders of the Company in the second quarter of 2013 however increased by 12% to RM251.0 million from the RM224.2 million registered in the same quarter of 2012. The increase was due to the better margins in the Oil & Gas segment.
Automotive Segment
Total industry volume (“TIV”) as reported by Malaysian Automotive Association (“MAA”) for the 2nd quarter of 2013 of 155,824 units was 4.2% lower than 162,725 units recorded in the corresponding quarter in 2012. Sale of Toyota vehicles was 18.6% lower in line with the reduction in the TIV, as well as intense competition from new models launched by competitors. Perodua on the other hand, recorded an increase in vehicle sales of 9.8% in the 2nd quarter of 2013 compared to the corresponding quarter in 2012, contributed by higher sales of the new MyVi.
In line with the lower revenue, the profit before taxation recorded in the second quarter of 2013 of RM358.1 million was 27.0% lower than the RM490.3 million recorded in the same quarter of 2012. The reduction was attributable to higher selling and distribution expenses resulting from increase in promotional and advertising activities.
Toyota and Perodua vehicle sales of 74,503 units constitute 47.8% of the TIV of 155,824 units reported by MAA for the quarter ended 30th June 2013.
Equipment Segment
Revenue of the Equipment segment declined by 20.7%, from RM560.2 million recorded in the corresponding quarter of 2012 to RM444.2 million registered in the current quarter. The reduction in sales was due to lower demand for parts and equipment resulting from the weaker construction sector as well as the drop in mining activities at our overseas subsidiary.
In line with the above, the profit before taxation of the Equipment segment reduced by 8.5%, from RM56.7 million recorded in the corresponding quarter of 2012 to RM51.9 million for the current quarter.
Oil & Gas Segment
Revenue of the Oil & Gas segment for the current quarter ended 30th June 2013 was lower by 10.1% compared to the same quarter of 2012 mainly due to the expiration of a semi-submersible rig contract for Hakuryu 5 in January 2013.
Notwithstanding the above, profit before taxation increased to RM75.8 million in the current quarter from RM18.5 million registered in the preceding year’s corresponding quarter resulting from :
- new contribution from NAGA 4;
- lower repairs and maintenance cost following completion of the Deepdish project for NAGA 1;and
- completion of a sale of property by one of the subsidiaries.
Manufacturing & Engineering Segment
Revenue for the Manufacturing & Engineering segment for the current quarter of RM187.9 million was higher than the RM177.0 million recorded in the same quarter of 2012. However, this segment registered a loss before taxation of RM2.5 million for the quarter. The loss was mainly contributed by the weakening of the Indian Rupee which resulted in an unrealised forex loss on the USD loans of the subsidiaries in India.
Dividend
The Board is pleased to declare an interim single-tier dividend of 20% or 10.0 sen (2012 – 20% or 10.0 sen) per share of RM0.50 each, amounting to a net dividend payable of approximately RM116.8 million (2012- RM116.8 million) for the year ending 31st December 2013, to be paid on 8th October 2013.
