PETALING JAYA: UMW Holdings Bhd posted a net profit of RM86.50 million for the first quarter ending March 31, 2019, an increase of 16.7% from RM74.08 million recorded a year ago attributed to the reduced losses of its unlisted oil & gas segment.
The group reported revenue of RM2.77 billion for the quarter, an increase of 13.9% from RM2.42 billion recorded in the corresponding period last year, due to higher vehicle sales from the automotive segment and better unit sales from its aerospace business in the manufacturing & engineering segment.
Its president and group CEO Badrul Feisal Abdul Rahim (pix) said subsequent to its strategic decision to refocus on its three core businesses, it has begun to realise the benefits of some of its key initiatives this year.
“We will continue to strengthen our presence in the automotive market, especially with our new state-of-the-art assembly plant. Since commercial production began in January, we have introduced the all-new Toyota Vios and Toyota Yaris with high local content to be more competitive in the market.”
He also said the revival of the major infrastructure projects is expected to spark optimism in the equipment segment as demand increases.
For its manufacturing & engineering (M&E) segment, it said that KYB-UMW will commence its plant modernisation activities to meet increasing demand, while we continue to ramp-up production of fan cases for Rolls-Royce.
“We also see potential to explore and penetrate more markets in Asean for our very own Grantt brand of lubricants,” he said.
The group is embarking on its cost optimisation initiatives to improve its business performance and operational productivity.
Moving forward, while the business environment remains challenging, the group is well-positioned to continue to deliver good results.
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 Overnight Polict Rate are 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.
The industrial equipment business is projected to continue performing well, especially in the rental market. In the M&E segment, strong demand for auto components and lubricants arising from the strong automotive industry is expected to contribute positively to the segment whilst the aerospace business is steadily ramping up production to meet orders.