Shah Alam, 21 November 2013 – UMW Holdings Berhad announced today that the Group recorded lower revenue of RM3,456.6 million for the third quarter ended 30th September 2013 compared to RM3,957.5 million in the same period of last year. The lower revenue was mainly contributed by the lower sales of Automotive and Equipment segments.
Consequently, the Group recorded a lower profit before taxation of RM245.6 million for the third quarter ended 30th September 2013 compared to RM595.8 million of the same period last year. This was mainly due to lower contributions from the Automotive and Manufacturing & Equipment segments but offset by higher contributions from the Equipment and Oil & Gas segments.
The net profit attributable to equity holders of the Company in the third quarter of 2013 was RM101.5 million compared to RM299.1 million registered in the same quarter of 2012.
Automotive Segment
Revenue of RM2,433.3 million for the current quarter ended 30th September 2013 was lower than RM2,934.9 million recorded in the same quarter last year. Intense competition from the new models launched by competitors had resulted in lower demand for Toyota vehicles thus a 22.0% reduction in the number of vehicles sold. Vios model run-out during the quarter pending the new model launch in Oct 2013 also contributed to the lower revenue. Perodua on the other hand, recorded an increase in vehicle sales of 5.8% in the 3rd 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 third quarter of 2013 of RM294.9 million was lower than the RM511.2 million recorded in the same quarter of 2012.
Equipment Segment
Revenue of the Equipment segment was RM410.8 million, lower than that of the same period last year of RM527.7 million. Lower demand for parts and equipment resulting from the weaker construction sector, drop in commodity prices as well as the drop in mining activities at our overseas operating companies, led to the reduction in the revenue.
Notwithstanding the above, the profit before taxation of the Equipment segment increased to RM55.6 million from RM53.4 million recorded in the previous year’s corresponding quarter. The improvement was contributed by better margin and derivative fair value gain.
Oil & Gas Segment
Revenue of the Oil & Gas segment of RM205.3 million for the current quarter was higher compared to the same quarter of 2012 of RM167.6 million, mainly due to the higher exploration income especially from the new NAGA 4.
In line with the increase in revenue, profit before taxation increased to RM54.5 million in the current quarter from RM13.9 million registered in the preceding year’s corresponding quarter.
Manufacturing & Engineering Segment
Revenue for the Manufacturing & Engineering segment for the current quarter of RM188.9 million was higher than the RM177.0 million recorded in the same quarter of 2012. However, this segment registered a loss before taxation of RM31.1 million for the quarter. The loss was mainly contributed by the impairment of assets and weakening of the Indian Rupee which resulted in an unrealized Forex loss on the USD loans.
Dividend
The Board has declared a second interim single-tier dividend of 30% or 15.0 sen (2012 – 30% or 15.0 sen) and a special interim single-tier dividend of 20% or 10.0 sen per share of RM0.50 each, amounting to a net dividend payable of approximately RM175.2 million (2012- RM175.2 million) and RM116.8 million, respectively, for the year ending 31st December 2013, to be paid on 20th January 2014.
About UMW
The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in four core businesses – Automotive, Equipment, Manufacturing & Engineering, and Oil & Gas.
Adopting its rallying call – Beyond Boundaries®, UMW is set to play a leading role in shaping the future of its industries globally. The Group will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of its stakeholders.
