Shah Alam, 23 Nov 2012 – The UMW Group announced today that its Group revenue of RM3,964.3 million for the third quarter ended 30 September 2012 surpassed the RM3,691.4 million registered in the preceding year’s corresponding quarter by RM272.9 million or 7.4 percent. All business segments with the exception of the Equipment segment, registered improved revenue in the third quarter of 2012. Group profit before taxation for the third quarter of 2012 surged to RM597.6 million from the RM391.9 million registered in the same quarter of 2011, an increase of 52.5 percent or RM205.7 million. In addition to the higher revenue mentioned above, turnaround from a loss to a profit position achieved by both the Oil & Gas and the Manufacturing & Engineering segments also contributed to the significant increase in Group profit before tax.
Net profit attributable to equity holders of the Company in the third quarter of 2012 rose to RM299.1 million from the RM146.9 million recorded in the same quarter of 2011, an increase of RM152.2 million or 103.6 percent.
Automotive Segment
For the third quarter of 2012, sale of Toyota vehicles improved by approximately 7.6 percent or 1,879 units compared to the same quarter of 2011 which was affected by the March 2011 tsunami in Japan. As a result, revenue of RM2,934.9 million for the third quarter of 2012 exceeded the RM2,616.1 million registered in the same quarter of 2011 by RM318.8 million or 12.2 percent.
However, for the third quarter of 2012, Perodua recorded a reduction of 2.9 percent or 1,400 units in vehicle sales compared to the same quarter of 2011. Bank Negara Malaysia’s tighter guidelines on responsible lending continue to affect sales of its entry-level Viva model.
Higher Toyota vehicle sales, favourable model mix and lower selling and distribution expenses mainly accounted for the improved profit contributions in the third quarter of 2012.
For the third quarter ended 30 September 2012, total Toyota and Perodua vehicle sales of 73,577 units represented 46.8 percent of the total industry volume of 157,223 units. In the third quarter of 2011, a total of 73,137 units of Toyota and Perodua or 47.8 percent of the total industry volume of 153,041 units were sold.
Equipment Segment
Revenue of the Equipment segment declined by 16.4 percent or RM103.7 million in the third quarter of 2012 compared to the same quarter of 2011. Generally, demand for its heavy and industrial equipment has softened due to the slow-down in the economy of the countries it is operating in. Suspension of some mining activities overseas has affected demand for its mining equipment.
Despite lover revenue, the Equipment segment achieved a higher profit of RM53.4 million versus the RM35.6 million registered in the same quarter of 2011. An overseas subsidiary has reported profit in the third quarter of 2012 as opposed to a substantial loss from a maintenance and repair contract incurred in the same quarter of 2011.
Oil & Gas Segment
The Oil & Gas segment posted revenue of RM337.2 million in the third quarter of 2012 compared to the RM295.1 million registered in the same quarter of 2011, an increase of RM42.1 million or 14.3 percent. The revenue improvement was attributable to the following • Increase in day rate for Naga 3 offshore rig
• Additional revenue contribution from the Garraf Power Plant Phase 1 project;
• Full-quarter revenue contribution from Hakuryu 5, a semi-submersible rig. Hakuryu 5 was not income-generating in the third quarter of 2011. However, the above revenue improvement was partly offset by the zero revenue contribution following the dry-docking of Naga 1 for deep-dish installation.
The Oil & Gas segment reported a profit of RM21.4 million in the third quarter of 2011. The turnaround was the result of:
• Improved profit margin from a higher day rate for Naga 3
• Additional profit contribution from the Garraf Power Plant Phase 1 project;
• Favourable movement in fair value of its overseas quoted investments and foreign exchange rate for Indian Rupee.
However, the dry-docking of Naga 1 for deep-dish installation has lowered the profitability of the Oil & Gas segment in the third quarter of 2012. Naga 1 is expected to resume operation in December 2012.
Manufacturing & Engineering Segment
The Manufacturing & Engineering segment achieved improvements in both revenue and profit contributions in the third quarter of 2012 compared to the same quarter in 2011. For the current quarter, revenue rose to RM181.6 million from the RM163.7 million recorded in the same quarter of 2011, an increase of RM17.9 million or 10.9 percent. Stronger demand for Kayaba products and improved sales from higher capacity utilisation by its new automotive component plants in India and lubricant plant in China, contributed to the higher revenue.
In the third quarter of 2012, this segment posted a profit of RM0.9 million in contrast to a loss of RM7.6 million recorded in the same quarter of 2011, an improvement of RM8.5 million. Higher revenue as well as foreign currency exchange gains from the strengthening of Indian Rupee against the United States Dollar contributed to the profit improvement.
Dividend
The Board is pleased to declare a second interim single-tier dividend of 30 percent or 15.0 sen (2011-27 percent or 13.5 sen) per share of RM0.50 each, amounting to a net dividend payable of approximately RM175.2 million (2011 – RM157.7 million) for the year ending 31 December 2012, to be paid on 8 February 2013.
