-       Automotive segment’s revenue grew 15.2%
-       Equipment segment’s revenue improved by 2.6%
-       Manufacturing & Engineering segment’s revenue soared 40.7%
-       Group revenue from Continuing Operations rose 14.9%

KUALA LUMPUR, May 21 (Bernama) -- UMW Holdings Berhad’s revenue from Continuing Operations rose 14.9% to RM2,774.8 million, propelled by better showing from all three core business segments.  The Automotive segment registered higher vehicle sales in the first quarter of 2019, while improving sales in the heavy equipment business boosted the performance of the Equipment segment.  Furthermore, the Manufacturing & Engineering (M&E) segment achieved robust revenue growth on the back of ramping up of fan cases delivery to Rolls-Royce as well as better sales in the auto components business.  UMW’s profit before taxation (PBT) from Continuing Operations narrowed to RM140.7 million in the first quarter of the year due to higher depreciation attributable to the new Bukit Raja plant coupled with lower margin in the Equipment segment.  Nonetheless, the Group’s consolidated net profit surged to RM86.5 million for the first quarter of 2019 compared to RM74.1 million registered in the same quarter of last year as the losses from the Unlisted Oil & Gas segment significantly reduced.
 
UMW Holdings Berhad President & Group CEO, Badrul Feisal bin Abdul Rahim said, “Subsequent to our strategic decision to refocus on our three core businesses, we have begun to realise the benefits of some of our key initiatives this year.  We will continue to strengthen our presence in the automotive market, especially with our new state-of-the-art assembly plant.  Since commercial production began in January, we have introduced the all-new Toyota Vios and Toyota Yaris with high local content to be more competitive in the market.  The revival of the major infrastructure projects is expected to spark optimism in the Equipment segment as demand increases.  In the M&E segment, KYB-UMW will commence its plant modernisation activities to meet increasing demand, while we continue to ramp-up production of fan cases for Rolls-Royce.  We also see potential to explore and penetrate more markets in ASEAN for our very own Grantt brand of lubricants.
  
Notwithstanding the uncertainty in the global economy due to trade tensions as well as the exchange rate movements, the Group is embarking on its cost optimisation initiatives to improve its business performance and operational productivity.  All in, the Group is on a firm path to deliver sustainable value to our shareholders.”
 
For the first quarter of 2019, the Group achieved a higher consolidated PBT of RM140.5 million compared to RM123.6 million recorded in the corresponding quarter of the previous year.  The improved result was mainly attributable to the significantly narrowing losses registered in the Discontinued Operations.  The segment posted a marginal loss before taxation of RM0.1 million compared to loss before taxation of RM30.7 million registered a year ago.   Included in the result last year was a write down of assets and investments to fair value in line with the Group’s divestment strategy from the Unlisted Oil & Gas segment. 
 
The Automotive segment registered revenue of RM2,162.5 million which was 15.2% higher than the RM1,877.1 million reported in the previous corresponding quarter.  The improved revenue was due to higher number of vehicles sold in the first quarter of 2019.  Notwithstanding the higher revenue, PBT was marginally lower by RM1.7 million to RM124.2 million due to higher depreciation, which was partially offset by better performance from an associated company.
 
In the first quarter of 2019, the Equipment segment registered revenue of RM382.8 million which was higher than the RM373.0 million reported in the first quarter of 2018, mainly driven by improved sales in the heavy equipment business.  However, PBT eased by RM2.7 million from RM44.9 million to RM42.2 million, affected by the competitive product pricing environment.
 
M&E segment’s revenue surged 40.7% to RM237.1 million in the first quarter of 2019 compared to RM168.5 million reported in the previous corresponding quarter.  The improved revenue was contributed by the aerospace business from ramping up of fan cases delivery and increased sales in the auto components business.  Consequently, the segment rebounded from a loss before taxation of RM2.9 million in the first quarter of last year to achieve a PBT of RM2.3 million in the current quarter.   
 
Moving forward, while the business environment remains challenging, the Group is well-positioned to continue to deliver good results.  The introduction of fresh and exciting models from its new automotive assembly plant and lower borrowing costs for consumers as a result of the reduction in OPR are expected to boost sales of vehicles.  The Heavy Equipment business is also expected to gain from the revival of the major infrastructure projects in Malaysia.  The Industrial Equipment business is projected to continue performing well, especially in the rental market.  In the M&E segment, strong demand for auto components and lubricants arising from the strong automotive industry is expected to contribute positively to the segment whilst the Aerospace business is steadily ramping up production to meet orders.

About UMW
The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in three core business segments – Automotive, Equipment and Manufacturing & Engineering.  The Group operates in 8 countries and has close to 8,300 employees.

Adopting its rallying call – Beyond Boundaries®, UMW is set to play a leading role in shaping the future of its industries globally. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of all its stakeholders.

Source: UMW Corporation Sdn. Bhd.

FOR MORE INFORMATION, PLEASE CONTACT:
Name: S Vikneshwaran
General Manager – Investor, Media Relations & Sustainability
UMW Corporation Sdn. Bhd.
Tel: +603 2025 2104 / +6019 850 5799
Email: vikneshwaran.s@umw.com.my

--BERNAMA