Shah Alam, 26 November 2014 – UMW Holdings Berhad’s revenue improved from RM3,456.6 million recorded in the third quarter ended 30th September 2013 to RM3,702.5 million recorded in the same period of 2014, an increase of RM245.9 million or 7.1%. The improved revenue was mainly contributed by the Automotive and Oil & Gas segments.
In tandem with the higher revenue, profit before taxation increased to RM430.3 million for the third quarter ended 30th September 2014 from RM245.6 million recorded in the same period of 2013.
In line with the increased profit before taxation, net profit attributable to equity holders of the Company for the third quarter ended 30th September 2014 also increased to RM197.0 million from RM101.5 million registered in the previous year’s corresponding quarter.
Automotive segment recorded a revenue of RM2,643.4 million in the third quarter of 2014, an increase of RM210.1 million or 8.6% higher than RM2,433.3 million registered in the third quarter of 2013. Toyota vehicle sales for the quarter increased by 19.3% compared to the same quarter of 2013, mainly contributed by the better sales of Vios and Altis.
In line with the higher revenue, profit before taxation increased to RM343.9 million from RM294.9 million recorded in the corresponding quarter of 2013.
The Equipment segment contributed a revenue of RM434.8 million during the third quarter of 2014, a marginal increase of RM24.0 million or 5.8% compared to RM410.8 million recorded in the same period of 2013. Higher revenue during the quarter was mainly contributed by the industrial equipment segment.
Profit before taxation in the third quarter of 2014 of RM44.4 million was lower compared to RM55.6 million recorded in the previous corresponding quarter. The increase in profitability of the industrial equipment segment was not sufficient to cover the drop in the heavy equipment segment’s profitability that resulted from the continued suspension of mining activities in Myanmar and continued drop in commodity prices in Papua New Guinea.
The Oil & Gas segment recorded a revenue of RM254.3 million for the third quarter of 2014, an increase of RM49.0 million or 23.9% compared to the RM205.3 million registered in the same quarter of 2013. Higher revenue contribution mainly from the Drilling Services segment, resulted in the revenue improvement in the third quarter of 2014. Overseas operations contributed approximately 64.0% of the segment’s revenue in the third quarter of 2014.
The segment achieved a profit before taxation of RM75.9 million in the third quarter of 2014 compared to the RM54.5 million recorded in the corresponding quarter of 2013, an improvement of RM21.4 million or 39.3%. Higher profit contribution from the Drilling Services segment contributed to the profit improvement in the third quarter of 2014.
The Manufacturing & Engineering segment’s revenue for the third quarter of 2014 of RM180.2 million was marginally lower than RM188.9 million recorded in the same quarter of 2013, mainly caused by lower contributions from the local automotive component manufacturers.
The segment recorded a lower loss of RM1.5 million for the current quarter compared to a loss of RM31.1 million in the previous year’s corresponding quarter. Higher losses in the same quarter of 2013 was mainly due to impairment of assets made during the period.
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 & Engineering, and Oil & Gas.
Adopting its rallying call – Beyond Boundaries®, UMW is set to become a truly world-class organisation, knowing that a world class brand never forgets its responsibility to society. Corporate Social Responsibility (CSR) is something that the Company wants to do, not because it has to.