UMW Goes Beyond Boundaries- Achieves RM1 Billion PBT
Kuala Lumpur, 24 November 2008 – The UMW Group achieved yet another record Group profit before taxation of RM1,001.7 million for the nine months ended 30th September 2008, an 85.3% increase over the RM540.7 million registered in the same period of 2007. This achievement was on the back of a 35.6% increase in Group revenue to RM9,879.5 million for the nine months ended 30th September 2008.
This outstanding performance was attributable to the strong showing of the Automotive and Equipment segments.
Group revenue of RM3,326.2 million for the third quarter ended 30th September 2008 was RM556.5 million or 20.1% more than the RM2,769.7 million registered in the preceding year’s corresponding quarter. The improved sales registered by all business segments of the Group, predominantly the Automotive segment, resulted in the revenue growth.
Group profit before taxation for the third quarter ended 30th September 2008 of RM353.8 million outperformed the RM232.6 million achieved in the same quarter of 2007 by RM121.2 million, or 52.1%. Higher sales of Toyota vehicles coupled with favourable mix and improved performance of the Equipment segment accounted for the higher Group profit before taxation.
The RM152.7 million net profit attributable to the equity holders of the Company for the third quarter showed an increase of RM13.6 million or 9.8% from the RM139.1 million recorded in the preceding year’s corresponding quarter.
“I am extremely pleased with the third quarter performance which overall has seen tremendous growth over last year. This is yet another record performance for the Group,” said Dato’ Abdul Halim Harun, Group Managing Director and Chief Executive Officer of UMW Holdings Berhad.
Total Toyota and Perodua vehicle sales of 209,270 units represented 48.7% of the TIV of 429,913 units for the nine months ended 30th September 2008, as reported by the Malaysian Automotive Association.
Although total demand for motor vehicles in the fourth quarter of 2008 is expected to slow down in view of the weaker economic outlook, the Group does not anticipate sales of Toyota and Perodua vehicles to be substantially affected. This is mainly due to the quality of fuel-efficient vehicles in the wide range of models the Group offers.
Meanwhile, the Group expects the oil and gas companies to perform well as it believes that the prevailing lower crude oil prices will not significantly affect exploration and production activities, as investment and capital expenditure by major oil corporations are long term in nature in their effort to increase total reserves.
Under the current economic scenario, overall demand for heavy and industrial equipment for the rest of the year may be affected by lower commodity prices and export of manufactured goods.
The Group has achieved better-than-expected performance in the first three quarters of 2008. The Board is confident that this, together with the various proactive measures taken by the companies in the Group to maintain market share and to mitigate the effects of the slower economic growth, will enable the Group to post a record performance for the financial year ending 2008.
