KUALA LUMPUR, May 21 — UMW Holdings Bhd’s net profit surged to RM86.50 million for the first quarter ended March 31, 2019 (Q1 2019), up from RM74.08 million in the same quarter last year as losses from its unlisted oil and gas (O&G) segment have significantly reduced.
In a filing with Bursa Malaysia today, the automotive player said the lower loss in unlisted O&G was mainly due to its scaled down operations in line with the divestment strategy of the O&G segment.
Revenue also rose to RM2.77 billion from RM2.42 billion previously, propelled by better showing from all three core business segments, namely automotive, equipment and manufacturing and engineering (M&E).
Meanwhile, in a statement today, UMW said revenue from automotive segment rose 15.2 per cent year-on-year (y-o-y) to RM2.16 billion due to higher number of vehicles sold in Q1 2019.
“Equipment segment registered a revenue of RM382.8 million compared with RM373 million in Q1 2018, mainly driven by improved sales in the heavy equipment business.
“M&E segment’s revenue surged 40.7 per cent y-o-y to RM237.1 million in Q1 2019, contributed by the aerospace business from ramping up of fan cases delivery and increased sales in the auto components business,” it said.
Moving forward, UMW said the introduction of fresh and exciting models from its new automotive assembly plant and lower borrowing costs for consumers as a result of the reduction in the overnight policy rate were expected to boost sales of vehicles.
“The heavy equipment business is also expected to gain from the revival of the major infrastructure projects in Malaysia, and the industrial equipment business is projected to continue performing well, especially in the rental market,” it said.
As for the M&E segment, the company said strong demand for auto components and lubricants arising from the strong automotive industry was expected to contribute positively to the segment, whilst the aerospace business was steadily ramping up production to meet orders.
“While the business environment remains challenging, the group is well-positioned to continue to deliver good results,” it added. — Bernama
