Shah Alam, 19 Aug 2011 – The UMW Group announced a revenue of RM3.166 billion for the second quarter ended 30 June 2011, representing a slight drop of 1.7% from the revenue registered in the first quarter. Lower sales of Toyota vehicles due to production disruptions caused by the earthquake and tsunami in Japan, resulted in the lower revenue for the second quarter.
Group profit before taxation for the second quarter ended 30 June 2011 decreased from RM339.5 million in the first quarter of 2011 to RM312.0 million, a reduction of 8.1% or RM27.5million. Group revenue of RM6,387.6 million for the six months ended 30 June 2011 improved marginally over the RM6,315.2 million registered in the same period of 2010 by RM72.4 million or 1.1%.
Total Toyota and Perodua vehicle sales of 125,813 units represented 42.3% of the total industry volume of 297,203 units reported by the Malaysian Automotive Association (MAA) for the six months ended 30 June 2011.
The MAA revised its 2011 TIV forecast of new motor vehicle sales from 618,000 units to 608,000 units. This downward revision by 10,000 units or 1.6% was made in view of the production disruptions caused by the tsunami in Japan as well as the slow-down in vehicle registration caused by the amendments to the Hire Purchase Act (“HPA”).
Notwithstanding the above, the performance of both Toyota and Perodua is expected to improve significantly in the second half of 2011. Consequently, profit contributions from the Automotive segment are expected to be in line with the Group’s original 2011 internal targets. Datuk Syed Hisham bin Syed Wazir, President and Group CEO of UMW said, “I am pleased to announce that we have ramped up our Toyota vehicle production for the second half of the year and we expect to meet our sales targets. Perodua’s sales was also affected by the Japan disaster and the run-out of the old Myvi. The brand new Myvi was launched on 16th June and the response has been very good. As such, the performance of both Toyota and Perodua is expected to the better in the 2nd half”.
Supply of Komatsu, Toyota and Mitsubishi equipment has returned to normal since July 2011. The impact of the tsunami on the performance of the Equipment segment during the second quarter of 2011 was relatively minor. Strong demand for its heavy and industrial equipment is expected to continue into the second half of 2011. Both revenue and profit contributions from the Manufacturing and Engineering segment for the year 2011 are expected to be lower than budget due to the slow-down in vehicle sales caused by the tsunami in Japan. Sales of its automotive parts are picking up following the progressive recovery in the automotive sector.
The operating results of UMW’s Oil & Gas Division have shown considerable improvement. With the improved performance, the division is expected to be profitable again from this year.
The Group’s performance is progressing satisfactorily in accordance with its business recovery plans and the Group is likely to achieve its internal performance targets for 2011.
The Board declared an interim single-tier dividend of 20% or 10.0 sen (2010 – 20% or 10.0 sen) per share of RM0.50 each, amounting to a net dividend payable of approximately RM116.8 million (2010 – RM114.8 million) for the year ending 31st December 2011, to be paid on 7th October 2011.