KUALA LUMPUR, 26 November 2015–UMW Holdings Berhad recorded revenue of RM3,533.2 million for the third quarter ended 30th September 2015, 4.6% lower than the RM3,702.5 million recorded in the same quarter of 2014, mainly due to lower performance of the Automotive and Oil & Gas segments.
In line with the lower revenue, the Group generated a lower profit before taxation of RM72.2 million against RM430.3 million in the previous year’s corresponding quarter. Higher operating cost arising from the current economic situations has impacted the Group’s profitability. Consequently, lower net profit attributable to equity holders of the Company of RM13.5 million for the third quarter ended 30th September 2015 was recorded against RM197.0 million of the previous year’s corresponding quarter.
The Automotive segment recorded a lower revenue of RM2,596.1 million for the third quarter of 2015 compared to RM2,643.4 million registered in the previous year’s corresponding quarter. The lower revenue was mainly due to the stiff competition following new model launches by other players in the market and weak consumer sentiments.
Consequently, the segment registered a lower profit before taxation of RM113.4 million for the quarter against RM343.9 million in the same quarter of last year. The weakening of ringgit and higher campaign and promotion expenses had affected the current quarter’s profit for the segment.
Equipment segment recorded a higher revenue of RM474.8 million for the third quarter of 2015, 9.2% in excess of RM434.8 million recorded in the same period of 2014. The increase was contributed mostly by the heavy equipment sub-segment attributable to the higher demand for equipment, parts and services especially from our business in Myanmar and Papua New Guinea. In tandem with the higher revenue, the segment reported higher profit before taxation of RM64.4 million against RM44.4 million recorded in the previous year’s corresponding quarter. The Oil & Gas segment’s revenue of RM212.7 million for the current quarter was 16.4% lower than the previous year’s corresponding quarter of RM254.3 million.
The reduction in revenue was due to lower time charter rates and lower utilisation of some of the rigs in the third quarter of 2015. However, this was mitigated by additional full quarter revenue from the new rig which commenced operation in October 2014.
Profit before taxation for the segment reduced from RM75.8 million in the third quarter of 2014 to RM11.5 million in the current quarter, parallel with the reduction in revenue. The profit was further weighed down by the additional operating expenses from the new offshore premium jack-up rig, UMW NAGA 7 which has not secured any contract during the reporting period.
Manufacturing & Engineering segment recorded a slight improvement in revenue and profit before taxation for the current quarter of RM3.6 million and RM2.2 million, respectively. The slight improvement was attributable by an improvement in the lubricant business as well as cost cutting measures undertaken by companies within the segment. Higher forex gain from retranslation of the foreign currency denominated balances also contributed to the improved gain.