Shah Alam, 23 May 2013 – UMW Holdings Berhad announced today that its Group revenue of RM3,359.3 million for the first quarter ended 31 March 2013 was slightly lower than the RM3,700.0 million registered in the preceding year’s corresponding quarter by RM340.7 million or 9.2%. This was contributed by the lower revenue from the Automotive, Oil & Gas and Equipment segments.
The Group profit before taxation for the first quarter ended 31 March 2013 reduced to RM432.7 million from the RM436.7 million registered in the same quarter of 2012, a reduction of 0.9% or RM4.0 million. The result of the Group was partly impacted by the unrealised fair value and foreign exchange loss of RM19.5 million compared to the gain of RM20.5 million in 2012.
The net profit attributable to the equity holders of the Company in the first quarter of 2013 reduced slightly to RM219.7 million from the RM220.0 million registered in the same quarter of 2012, a reduction of RM0.3 million or 0.1%.
Automotive Segment
In the first quarter of 2013, UMW Toyota Motor sales was 10% lower than the same quarter of 2012. The shortfall was mainly due to the intense competition from the launches of the new models from the competitors. The sales of Perodua vehicles fell by approximately 2.0% in the first quarter of 2013 compared to the corresponding quarter in 2012.
In line with the lower revenue, the profit before taxation recorded in the first quarter of 2013 of RM368.1 million, was RM2.6 million or 0.7% lower than the RM370.7 million recorded in the same quarter of 2012. The reduction was also attributable to the higher selling and distribution expenses.
The Total Toyota and Perodua vehicle sales of 69,426 units represented 44.0% of the total industry volume of 157,664 units reported by the Malaysian Automotive Association for the quarter ended 31st March 2013.
Equipment Segment
The revenue of Equipment Segment declined by 22.0% or RM135.4 million mainly due to the lower demand for UMW’s major equipment in Myanmar. However, this was compensated by the higher parts sales in Niugini.
Despite the lower revenue, the profit before tax of the Equipment Segment increased to RM59.1 million from RM54.1 million registered in the same quarter of 2012, an improvement of 9.2% or RM5.0 million. The improved profit was mainly contributed by the business improvement in Niugini and lower operating expenses.
Oil & Gas Segment
The revenue of the Oil & Gas segment of RM178.7 million was RM97.3 million or 35.3% lower than RM276.0 million recorded in the previous corresponding quarter. The profit declined by RM19.6 million or 45.5% from RM43.1 million to RM23.5 million.
The lower revenue and profit was largely attributable to:
- 72 operating days of Naga 1 compared to the full quarter operations in the first quarter of 2012 of 91 days due to the refurbishment exercise; and
- lower revenue from the trading of oilfield products and services.
Manufacturing & Engineering Segment
The revenue for the current quarter of RM177.1 million was higher than the RM158.4 million recorded in the same quarter of 2012 mainly due to the higher demand for our products.
The higher revenue had contributed to the higher profit before taxation for the first quarter of 2013 of RM9.4 million compared to the RM4.1 million recorded in the same quarter of 2012.
Current Prospect
Automotive Segment
UMW Toyota and Perodua are maintaining the 2013 sales targets, despite the intense competition in the market with aggressive promotions on new model launches.
Equipment Segment
The Equipment segment revenue is expected to continue to improve despite the uncertain external factors which may affect the demand for equipment. Profitability of this segment is expected to sustain resulting from better cost management and increased parts sales.
Oil & Gas Segment
The performance of the Oil & Gas segment is expected to continue to improve for the remaining quarters of 2013 from the full contributions of refurbished Naga 1, Naga 2 with a higher daily operating rate, Naga 3 and additional contribution from the new Naga 4.
Manufacturing & Engineering Segment
The performance of the Manufacturing & Engineering segment is expected to improve for the remaining quarters of 2013 due to the following –
• higher capacity utilisation for the automotive component plants and lubricant plant in China; and
• increased sales of Repsol and Pennzoil lubricant products.
Barring unforeseen circumstances, the Board is of the view that the Group’s performance for 2013 will remain satisfactory.
