- Group revenue increased by 19% to RM4,834 million.
- All three core business segments recorded commendable results compared with a year ago.
 
KUALA LUMPUR, Nov 28 (Bernama) -- UMW Holdings Berhad’s (“Group”) profit after taxation and minority interests (“PATAMI”) surged by 71.9% to RM173.1 million for the third quarter ended 30 September 2023 (“Q3 2023”), compared with the RM100.7 million registered in the corresponding quarter ended 30 September 2022 (“corresponding quarter”), mainly attributed to the increase in revenue by 19.1% to RM4,834.1 million.  The Group’s profit before taxation and zakat (“PBTZ”) increased by 40.9% to RM326.3 million compared with the RM231.5 million registered in the corresponding quarter supported by higher contribution from all three core business segments.
 
Automotive segment
 
The Automotive segment’s revenue for Q3 2023 increased by 17.4% to RM4,023.2 million compared with the RM3,427.6 million recorded in the corresponding quarter, mainly due to the higher number of vehicles sold.  In line with the higher revenue and a higher contribution from an associated company, the segment’s PBTZ rose by 40.3% to RM257.6 million compared with the RM183.6 million reported in the corresponding quarter.  The demand for vehicles is expected to remain strong for the remainder of the year, supported by the high industry order backlog.  The sales momentum will be further supported by the year-end sales promotions as well as new model launches.  The Group anticipates that the Automotive segment’s sales will continue to perform well in the last quarter of the year.  
 
Equipment segment
 
The Equipment segment’s revenue increased by 14.6% to RM452.0 million in Q3 2023 due to the sustained demand for equipment in both local and overseas markets.  Supported by the higher revenue, the segment’s PBTZ grew by 11.1% to RM55.5 million for Q3 2023.  The outlook for the Equipment segment continues to remain favourable in all the sectors that it serves.  With the completion of the Share Sale & Purchase Agreement and Shareholders Agreement with Toyota Industries Corporation ("TICO"), the Industrial Equipment sub-segment aims to leverage on TICO's capabilities to establish a One-Stop Center for the industrial equipment and logistics automation businesses.  The Heavy Equipment sub-segment continues to exhibit strength, primarily driven by the increased demand in the mining sector in Papua New Guinea and the plantation sector in Malaysia.
 
Manufacturing & Engineering (“M&E”) segment
 
The M&E segment registered revenue of RM363.8 million in Q3 2023, 44.3% higher than the RM252.2 million recorded in the corresponding quarter.  The improved performance was mainly attributable to the higher contribution from the Aerospace sub-segment due to higher delivery of fan cases.  Consequently, the segment’s PBTZ surged by 91.2% to RM25.7 million in the current quarter compared with the RM13.4 million reported in the corresponding quarter. 
 
Going forward, the Auto Components and Lubricants sub-segments are expected to benefit from the sustained demand in the original equipment (“OE”) market, in line with the expected higher demand for new vehicles in the last quarter of the year.
 
The reopening of international borders and the increase in air travel which is expected to reach close to 95% of 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 orders for aircraft are expected to continue to improve beyond the pre-Covid-19 level.  The higher forecasted orders for fan cases will increase the plant utilisation rate and are expected to contribute positively to the Aerospace sub-segment for the remainder of the year.
 
Overall prospect
 
The Group is pleased with its strong performance in the third quarter of 2023 as all three core business segments registered improved results.  Moving forward, the Group will continue to focus on strengthening its businesses through operational efficiency and cost management initiatives as well as accelerate its  CREST@UMW initiatives to improve its resilience and sustainability.  The Group expects to deliver satisfactory performance for the year.

Source: UMW Corporation Sdn Bhd

FOR MORE INFORMATION, PLEASE CONTACT:
Name: S Vikneshwaaran
Tel: +6019-850 5799 
Email: vikneshwaran.s@umw.com.my 

--BERNAMA