PETALING JAYA: UMW Holdings Bhd saw its net profit for the third quarter ended Sept 30 (Q3’19) fall 13.9% to RM110.29 million, from RM128.13 million a year before, mainly due to lower vehicles sales in the automotive segment and weaker performance in the equipment segment.
Revenue for the quarter was also 12.4% lower at RM2.88 billion, from RM3.29 billion.
A special dividend of 4 sen per share was declared.
In a filing with Bursa Malaysia, UMW said its automotive segment registered a lower sales volume of vehicles for Q3’19, as the previous corresponding quarter had been boosted by the GST free period from June 1, 2018 to Aug 31, 2018.
The group’s heavy and industrial equipment businesses reported lower revenue following intense competition and sluggish demand in the current quarter. Its manufacturing and engineering segment also posted lower revenue and pre tax profit.
For the nine-month period, UMW’s net profit sank 22.2% to RM253.98 million, from RM326.59 million previously as the group had a one-off reversal of provision amounting to RM207 million in the corresponding period.
Revenue was flat at RM8.62 billion.
Looking ahead, UMW president and group CEO Badrul Feisal Abdul Rahim said the automotive segment will focus on introducing new, appealing and value-for-money models to remain competitive in the Malaysian automotive industry.
“Expansion of products and rental business are expected to drive the performance of the industrial equipment sub-segment, while the heavy equipment business may benefit from the recent revival of some infrastructure projects in Malaysia.
source https://www.thesundaily.my/business/umw-YG1679980
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