Shah Alam, 27 August 2014 – UMW Holdings Berhad announced today that the Group revenue of RM3,966.8 million for the second quarter ended 30th June 2014 was RM467.6 million or 13.4% higher than the RM3,499.2 million recorded in the same period of 2013. The improved revenue was contributed by all business segments within the Group.Despite the higher revenue, a lower profit before taxation of RM422.1 million was recorded for the second quarter ended 30th June 2014 compared to RM443.2 million recorded in the same period of 2013. This was mainly due to the provision for the expected loss of RM93 million on the proposed disposal of investment in the automotive component companies in India.
In line with the reduced profit before taxation, net profit attributable to equity holders of the Company for the second quarter ended 30th June 2014 also reduced to RM142.0 million from RM251.0 million registered in the previous year’s corresponding quarter.
Revenue for the Automotive Segment for the second quarter of 2014 of RM2,904.4 million increased by RM333.0 million or 13.0% from the RM2,571.4 million registered in the second quarter of 2013. Toyota vehicle sales for the quarter increased by 17.8% compared to the same quarter of 2013, mainly contributed by the increase in sales of Vios and Altis.
In line with the higher revenue, profit before taxation in the second quarter of 2014 of RM408.5 million recorded an increase of RM50.4 million or 14.1% from RM358.1 million registered in the previous corresponding quarter.
The Equipment Segment recorded a revenue of RM453.8 million compared to RM444.2 million recorded in the same period of 2013.
In line with the higher revenue, profit before taxation increased to RM55.1 million from RM51.9 million recorded in the corresponding quarter of 2013.
Better contribution from the industrial equipment segment resulted in the higher revenue and profit before taxation.
Oil & Gas Segment
Revenue for the Oil & Gas Segment of RM238.8 million for the current quarter was higher than the same quarter of 2013 of RM167.8 million.
The improved revenue in the current quarter was contributed by additional contribution from NAGA 5, which commenced operations in May 2014.
However, profit before taxation of RM66.2 million in the second quarter of 2014 was lower than the corresponding quarter in 2013 of RM75.8 million. The higher profit before taxation in 2013 was due to the one-off contribution from the sale of property by one of the subsidiaries of approximately RM30.0 million.
Manufacturing & Engineering Segment
The Manufacturing & Engineering Segment’s revenue for the current quarter of RM188.9 million was marginally higher than that of the same quarter in 2013.
The segment recorded a profit of RM11.9 million for the current quarter compared to a loss of RM2.5 million in the previous corresponding quarter. This was mainly due to the foreign exchange gain on the retranslation of the USD loans by the subsidiaries in India following the strengthening of the Indian Rupee against USD.
The Board declared an interim single-tier dividend of 20% or 10.0 sen (2013 – 20% or 10.0 sen) per share of RM0.50 each, amounting to a net dividend payable of approximately RM116.8 million (2013 – RM116.8 million) for the year ending 31st December 2014, to be paid on 8th October 2014.
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.