- Group revenue increased by more than 100%.
- All three core business segments achieved higher revenue and profit before taxation.
 
KUALA LUMPUR, Nov 29 (Bernama) -- UMW Holdings Berhad’s (“Group”) profit after taxation and minority interests (“PATAMI”) surged to RM100.7 million for the third quarter ended 30 September 2022 (“Q3 2022”), compared with the loss after taxation and minority interests (“LATAMI”) of RM47.9 million registered in the corresponding quarter ended 30 September 2021 (“corresponding quarter”).  Supported by the improved contribution from all three core business segments, Group revenue in Q3 2022 rose by more than 100% to RM4,057.5 million compared with RM2,016.4 million registered in the corresponding quarter, signalling a strong recovery towards the pre-Covid-19 levels.  The Group’s improved performance is mainly attributed to the economic recovery under the National Recovery Plan (“NRP”) as opposed to the Full Movement Control Order (“FMCO”) implemented from 1 June 2021 to 15 August 2021 as well as the transition into the endemic phase of Covid-19.

In view of the encouraging performance, UMW has declared an interim dividend of 3.0 sen per share amounting to RM35.0 million for the financial year ending 31 December 2022, to be paid on 15 December 2022.
 
Automotive segment
 
The Automotive segment’s revenue more than doubled to RM3,427.6 million compared with the corresponding quarter, supported by the higher number of vehicles sold which was driven by the sales tax exemption as well as the introduction of new models.  Furthermore, sales in Q3 2021 were impacted by the implementation of the FMCO.  In line with the higher revenue and share of profit from an associated company, the segment’s profit before taxation and zakat (“PBTZ”) surged to RM183.6 million.  The Automotive segment is expected to continue to benefit from the sales tax exemption for outstanding orders made before 30 June 2022 and to be registered by 31 March 2023. With the resumption of economic activities following the NRP, the Group has taken the necessary measures to ramp-up production to fulfil its outstanding orders.  This is further supported by improvements in the supply chain.  The outlook for the segment remains positive and the Group will continue to introduce new and facelifted models to maintain its sales momentum.  Barring unforeseen circumstances, the Group is confident of achieving its sales target for 2022.
 
Equipment segment
 
The Equipment segment’s revenue increased by 24.8% to RM394.4 million in Q3 2022 compared with the RM316.0 million registered in the corresponding quarter, mainly due to the improved demand for the segment’s products and services in the local and overseas markets.  In line with the higher revenue, the segment’s PBTZ more than doubled to RM50.0 million compared with the RM24.3 million reported in the corresponding quarter of 2021.  The growth prospect for the Equipment segment remains encouraging and is in tandem with the resumption of business and economic activities following the transition into endemicity.

The demand for heavy equipment is expected to improve in line with the resumption of construction and infrastructure activities in the countries the segment operates in.  Meanwhile, the Industrial Equipment sub-segment will continue to focus on growth sectors as well as to expand its forklift refurbishment business.  The segment will work closely with its principals to undertake cost optimisation activities and improve operational efficiencies to remain resilient.
 
Manufacturing & Engineering (“M&E”) segment
 
The segment’s revenue more than doubled to RM252.2 million compared with RM110.3 million in the corresponding quarter due to the higher contribution from all sub-segments.  In tandem with the higher revenue, the segment reported a higher PBTZ of RM13.4 million for Q3 2022. The M&E segment is expected to benefit from the robust original equipment (“OE”) and replacement equipment (“RE”) markets due to the expected higher demand for vehicles for the remainder of the year.  Both the Auto Components and Lubricants sub-segments are expected to register healthy growth supported by the improving demand.
 
The aerospace industry is gradually recovering as air travel improves leading to additional orders for planes from the airlines.  This, together with the clearing of the backlog orders is expected to improve the demand for fan cases.
 
Overall prospects
 
UMW Holdings Berhad President and Group CEO, Dato’ Ahmad Fuaad Kenali said, “We are encouraged by the improved results achieved by the Group in the third quarter of 2022 following economic recovery under the NRP.  The Group expects the momentum to continue in the final quarter of 2022 based on the outstanding orders as well as improving demand for its products and services.  However, the Group remains cautious on the potential downside of both external and domestic market forces and will continue to improve its resilience by focusing on cost optimisation and operational efficiency whilst engaging with its principals, suppliers and stakeholders to mitigate the challenges.  Overall, the Group expects its performance for the remainder of 2022 to be better than the previous year.”

SOURCE: UMW Holdings Berhad

FOR MORE INFORMATION, PLEASE CONTACT:
Name: S Vikneshwaaran
Tel: +6019-8505799
Email: vikneshwaran.s@umw.com.my

--BERNAMA