UMW ANNOUNCES EXECELLENT FIRST QUARTER 2008 RESULTS
SHAH ALAM, 23 May 2008 – The UMW Group today announced a 109%
increase in
group profit before tax to RM292.9 million for the first quarter ended
31 March 2008.
Improved margins from volume and sales mix, favourable foreign exchange
rates
and higher contributions from associated companies, resulted in the
higher Group
profit before taxation.
Group revenue of RM2,985.1 million for the first quarter ended 31 March
2008 was
higher than the RM2,012.0 million registered in the preceding year’s
corresponding
quarter by 48.4% or RM973.1 million. Higher sales of Toyota vehicles
resulted in the
increase in revenue for the quarter.
Net profit attributable to the equity holders of the Company for the
first quarter ended
31 March 2008 increased from the RM80.3 million recorded in the
preceding year’s
corresponding quarter to RM141.8 million, an increase of RM61.5 million
or 76.6%.
Combined Toyota and Perodua vehicle sales of 68,654 units represented
52.5% of
the total industry volume of 130,851 units for the quarter ended 31
March 2008, as
reported by the Malaysian Automotive Association.
“I am pleased with the first quarter performance which overall has
seen
tremendous
growth from last year’s first quarter”, said Dato’ Abdul Halim Harun,
UMW Group
Managing Director & Chief Executive Officer. “Our Automotive
Division was the star
performer this quarter. That being said, our traditional businesses
like Equipment and
Manufacturing & Engineering have also shown positive signs with
double digit
growth”.
The UMW Board expects the performance of the group for the rest of 2008
to
continue to be satisfactory. Although the automotive sector is very
competitive,
demand for Toyota and Perodua vehicles is expected to be maintained at
current
levels due to positive consumer response to our recently-launched
models.
Rising crude oil prices provide a favourable platform for global oil
majors to increase
their exploration and production activities as well as to upgrade their
existing
facilities. Thus, demand for products and services related to the Oil
& Gas industry,
particularly from the exploration and production sectors, is expected
to be positive.
Demand for heavy and industrial equipment is expected to be sustained,
particularly
from the ongoing construction, mining and logging activities.
Concerns on inflation and escalating cost of consumer goods may
affect
customer
sentiment in the second half of this year. However, the Group’s
strategy to enhance
revenue and profit from overseas investments is expected to mitigate
any shortfall
that may arise from domestic profitability.
