SHAH ALAM, 26 August 2015–UMW Holdings Berhad recorded revenue of RM3,485.3 million for the second quarter ended 30th June 2015, RM481.5 million or 12.1% lower that the RM3,966.8 million recorded in the same period of 2014. All business segments recorded lower revenue compared to the previous year’s corresponding quarter.
In line with the lower revenue, the Group generated lower profit before taxation of RM207.6 million against RM422.1 million in the previous year’s corresponding quarter. Consequently, the Group recorded net profit attributable to equity holders of the Company for the second quarter ended 30th June 2015 of RM68.4 million against RM142.0 million recorded in the previous year’s corresponding quarter.
The Automotive segment recorded revenue of RM2,732.7 million for the second quarter of 2015 compared to RM2,904.4 million registered in the previous year’s corresponding quarter. Toyota’s core vehicle models faced stiff competition from the new model launches by other players in the market.
Consequently, the segment registered a lower profit before taxation of RM263.4 million for the quarter. The weakening of Ringgit Malaysia has also affected the profit for the segment unfavourably.
Equipment segment’s revenue of RM353.6 million for the second quarter of 2015 was RM100.2 million or 22.1% lower than RM453.8 million recorded in the same period of 2014. Both heavy and industrial equipment sub-segments recorded lower revenue in the current quarter, attributable to the slower construction and mining sectors.
Consequently, profit before taxation for the Equipment segment decreased to RM33.7 million from RM55.1 million recorded in the previous year’s corresponding quarter. The Oil & Gas segment’s revenue of RM183.4 million for current quarter was 23.2% or RM55.4 million lower than the previous year’s corresponding quarter of RM238.8 million. The reduction in revenue was the result of lower charter rates and lower utilisation of some of our assets in the second quarter of 2015.
The lower revenue was mitigated by –additional revenue contributions from our new assets, UMW GAIT 6, a hydraulic workover unit and UMW NAGA 6, a jack-up rig, which commenced operations in August 2014 and October 2014, respectively; and translation gains from the appreciation of US Dollar against Ringgit Malaysia.
Hence, profit before taxation of RM8.0 million recorded for the current quarter was lower compared to RM66.2 million reported in the previous year’s corresponding quarter. The decrease in profit performance was mainly due to the lower revenue and the additional operating expenses from UMW NAGA 7 which has yet to secure a contract.
Manufacturing & Engineering segment recorded lower revenue and profit before taxation for the current quarter of RM165.4 million and RM0.4 million respectively. The lower contribution was attributed to lower sales by the auto component manufacturers especially for 4-wheeler products.
The Board has declared an interim single-tier dividend of 20% or 10 sen (2014 – 20% or 10 sen) per share of RM0.50 each amounting to a net dividend payable of approximately RM116.8 million (2014 – RM116.8 million) for the year ending 31 December 2015, to be paid on 8 October 2015.