-       Group revenue increased by 20% to RM4,380 million.
 
KUALA LUMPUR, May 26 (Bernama) -- UMW Holdings Berhad’s (“Group”) profit after taxation and minority interests (“PATAMI”) surged by 32.9% to RM134.46 million for the first quarter ended 31 March 2023 (“Q1 2023”), compared with the RM101.2 million registered in the corresponding quarter ended 31 March 2022 (“corresponding quarter”), mainly attributed to the increase in revenue by 20.0% to RM4,379.6 million.  Riding on the sustained economic growth momentum, all three core business segments achieved higher revenue and profit before taxation and zakat (“PBTZ”).
 
Automotive segment
 
The Automotive segment’s revenue for Q1 2023 grew by 18.1% to RM3,626.9 million compared with the corresponding quarter, mainly due to the higher number of vehicles sold.  In line with the higher revenue, the segment’s PBTZ increased by 5.4% to RM217.0 million.  The demand for the Automotive segment is expected to be sustained throughout the year supported by the encouraging and stable outstanding orders which was driven by higher mobility needs as the economy continues to expand.  The announcement on the deferment of the implementation of new excise duty regulation is expected to continue to further sustain the demand for the automotive segment.  With the easing of supply chain challenges, the Group continues to ramp up production to fulfil its backlog orders.  The Group expects the Automotive segment to remain positive going forward.
 
Equipment segment
 
The Equipment segment’s revenue increased by 17.0% to RM434.9 million in Q1 2023 mainly due to the stronger demand for the segment’s products and services in the local and overseas markets.  The higher revenue, coupled with a reduction in operating expenses, resulted in the segment’s PBTZ to surge by 61.6% to RM51.3 million for Q1 2023.  The Industrial Equipment sub-segment will continue to leverage its market leadership position and pursue pockets of opportunities in logistical automation and related adjacencies.  In line with the global trend for sustainability, the segment will also continue to promote its refurbishment program to prolong the life of its forklifts.  Concurrently, the Heavy Equipment sub-segment will maintain its performance with steady flow of customer orders from the mining, agriculture and construction sectors in the countries that it operates in.
 
Manufacturing & Engineering (“M&E”) segment
 
The M&E segment registered revenue of RM323.6 million in Q1 2023, 42.5% higher than the RM227.1 million recorded in the corresponding quarter.  The improved performance was attributable to the higher contribution from all sub-segments, including the Aerospace sub-segment due to the higher delivery of fan cases.  Consequently, the segment recorded PBTZ of RM22.4 million in the current quarter which was more than double the PBTZ of RM10.6 million reported in the corresponding quarter. 
 
Going forward, the Auto Components and Lubricants sub-segments are expected to remain strong in line with the demand for automotive products during the year.    
 
The reopening of international borders and the increase in air travel which is expected to reach the pre-pandemic level by the end of this year will bode well for the Aerospace sub-segment.  Rolls-Royce’s three-year forecast indicates that order numbers are expected to continue to improve beyond pre-Covid-19 levels.  The higher forecasted orders, combined with the backlog orders, will increase the plant utilisation rate and is expected to contribute positively to the Aerospace sub-segment in 2023.
 
Overall prospect
 
UMW Holdings Berhad President and Group CEO, Dato’ Ahmad Fuaad Kenali said, “We are encouraged by the Group’s results in the first quarter of 2023, which has exceeded the pre-pandemic levels.  Moving forward, the Group will continue to focus on strengthening its core businesses through operational efficiency and cost management initiatives as well as accelerate its CREST@UMW initiatives to improve its business resilience.  The Group expects to deliver satisfactory performance for the financial year 2023.”

Source: UMW CORPORATION SDN. BHD.

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

--BERNAMA