DRB-HICOM RE­DUCES NET LOSS BY HALF

Firm sees per­for­mance im­prov­ing on bet­ter eco­nomic out­look

New Straits Times - - Business - FARAH ADILLA

bt@me­di­aprima.com.my

DRB-HICOM Bhd has trimmed its net loss for the year ended March 31 to RM454.4 mil­lion from RM992.76 mil­lion in the pre­vi­ous year.

The group man­aged to keep rev­enue lev­els at RM12.06 bil­lion in the year, against RM12.17 bil­lion pre­vi­ously.

DRB-HICOM ex­pects its per­for­mance to im­prove this year, as Malaysia reg­is­ter’s a gross do­mes­tic prod­uct growth of 5.6 per cent in the first quar­ter of this year, boosted by strong do­mes­tic de­mand, higher pri­vate sec­tor in­vest­ment, im­proved net ex­ports and ring­git sta­bil­i­sa­tion.

“In line with eco­nomic growth, the group’s busi­ness sec­tors are ex­pected to fol­low this trend as well.

“As the eco­nomic ac­tiv­i­ties con­tinue to gain mo­men­tum, the group’s per­for­mance for the fi­nan­cial year end­ing March 31 2018 is ex­pected to im­prove ac­cord­ingly,” it said in a state­ment yes­ter­day.

DRB-HICOM said the ser­vices sec­tor had con­tin­ued to boost its rev­enue as the vol­ume of the national au­to­mo­tive sec­tor shrank last year

The ser­vices sec­tor recorded a 41 per cent rev­enue in­crease to RM3.55 bil­lion against RM2.51 bil­lion in the pre­vi­ous year.

DRB-HICOM said Pos Malaysia Bhd was a ma­jor boost as it be­came a sub­sidiary in the year un­der re­view.

The group said the prop­erty sec­tor had boosted rev­enue by 45 per cent to RM427.31 mil­lion dur­ing the year.

The sec­tor also saw a gain of RM398.11 mil­lion from the dis­posal of its en­tire 90 per cent eq­uity in Cor­win Hold­ing Pte Ltd in Sin­ga­pore in Novem­ber last year, through sub­sidiary Hicom Me­gah Sdn Bhd.

DRB-HICOM said its au­to­mo­tive seg­ment saw rev­enue slip 14 per cent to RM8.08 bil­lion largely due to lower sales, as the in­dus­try con­tracted last year.

It said 2015’s record 666,677unit to­tal in­dus­try vol­ume had de­clined by 13 p er cent to 580,124 units last year.

This af­fected all the brands un­der the group, in­clud­ing Pro­ton Hold­ings Bhd.

A Pos Malaysia em­ployee tend­ing to parcels at the com­pany. The unit helped to boost DRB-HICOM’s earn­ings last year.

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