UMW ANNOUNCES OUTSTANDING SECOND QUARTER 2008 RESULTS
Kuala Lumpur, 20 August 2008 – The UMW Group has announced group revenue
of RM3,568.2 million for the second quarter ended 30th June 2008. This was
RM1,063.5 million or 42.5 per cent more than the RM2,504.7 million registered in the
preceding year’s corresponding quarter. Higher sales recorded by all business
segments of the Group -- particularly the Automotive segment resulted in the
improved revenue.
Group profit before taxation for the second quarter of RM355.0 million outperformed
the RM167.8 million registered in the same quarter of 2007 by RM187.2 million, or
more than 100%. Higher Toyota and Perodua vehicle sales, robust performance from
the Equipment segment and favourable foreign exchange rates -- accounted for the
higher Group profit before taxation.
The RM151.7 million net profit attributable to the equity holders of the Company for
the second quarter showed an increase of RM44.9 million or 42.0% from the
RM106.8 million recorded in the preceding year’s corresponding quarter.
“I am pleased with the second quarter performance which overall has seen
tremendous growth from last year,” said Dato’ Abdul Halim Harun, Group Managing
Director and Chief Executive Officer of UMW Holdings Berhad. “As in the previous
quarter, our Automotive Division remains the star performer. That being said, our
traditional businesses like Equipment and Manufacturing & Engineering Divisions
have also shown positive signs with double digit growth.”
6-month performance
Group revenue of RM6,553.3 million for the six months ended 30th June 2008
improved over the RM4,516.7 million registered in the same period of 2007 by
RM2,036.6 million or 45.1%. In line with higher revenue, Group profit before taxation
for the six months ended 30th June 2008 of RM647.9 million exceeded the RM308.1
million registered in the same period of 2007 by RM339.8 million or more than 100%.
Consequently, the net profit attributable to the equity holders of the Company for
the six months ended 30th June 2008 increased to RM293.5 million from the RM187.1
million registered in the same period of 2007, an increase of RM106.4 million or
56.9%.
Improved performance from the Automotive and Equipment segments resulted in the
higher net profit. Total Toyota and Perodua vehicle sales of 138,501 units
represented 49.8% of the TIV of 277,974 units for the six months ended 30th June
2008, as reported by the Malaysian Automotive Association.
Going Forward
The increase in fuel prices and electricity tariffs has resulted in rising inflation, lower
GDP growth and, an anticipated reduction in private consumption in the second half
of 2008.
Total Industry Volume (“TIV”) for motor vehicles is also expected to taper following
the hire purchase interest rates hike and fuel price increase.
Going forward, the UMW Group is well-positioned to meet consumers' preference for
more fuel-efficient vehicles with its range of models in the medium and small
passenger car categories.
Under the current economic scenario, demand for heavy and industrial equipment
from the agricultural, logging, mining and construction sectors is expected to remain
stable.
Furthermore, current high crude oil prices provide incentive for global oil companies
to increase their exploration and production activities as well as upgrading their
existing facilities. Thus, demand for products and services related to the upstream Oil
& Gas sector is expected to continue to be strong. This augurs well for our Oil & Gas
Division.
In the light of the above, the Board is of the view that the Group’s performance for the
financial year 2008 will continue to be satisfactory.
Background of the New UMW
The UMW Group is an international conglomerate that develops industries, manages
partnerships and facilitates growth. It is involved in four core businesses -
Automotive, Equipment, Manufacturing and Engineering, and Oil and Gas.
Earlier this year UMW unveiled its new brand which is aimed at amplifying its leading
position at home and organising itself for greater global expansion. It will now focus
on building on the strengths of its core businesses as well as enhancing those
strengths in the global arena to further tap international opportunities.
In adopting its new rallying call - Beyond Boundaries – UMW is set to play a leading
role in shaping the future of its industries globally. The Company will do this by
inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering
excellence in everything it does; the rewards of which will contribute to the progress
and well-being of all its stakeholders.
