Automotive, M&E segments boost UMW’s Q1 performance
KUALA LUMPUR: UMW Holdings Bhd’s net profit increased 16.8 per cent to RM86.5 million in the first quarter ended March 31 on back of higher revenue across its core automotive and manufacturing and engineering (M&E) segments.
Revenue grew to RM2.77 billion from RM2.42 billion in the same period last year.
UMW president and group chief executive officer Badrul Feisal Abdul Rahim said the group would continue to strengthen its presence in the automotive market, especially on the back of its new state-of-theart assembly plant.
“Since commercial production started in January, we have introduced the all-new Toyota Vios and Toyota Yaris with high local content, which has enabled us to be more competitive. The revival of the major infrastructure projects is expected to spark optimism in the equipment segment as demand increases,” he said.
“In the M&E segment, KYBUMW will commence its plant modernisation activities to meet increasing demand while we will continue to ramp up production of fan cases for Rolls-Royce. We see potential in exploring and penetrating more markets in Asean for our Grantt brand of lubricants.”
Revenue contribution by its automotive and M&E segments rose 15.2 and 40.7 per cent to RM2.16 billion and RM237.1 million, respectively.
The group attributed the improved results to higher number of vehicles sold in the first quarter, increase in fan cases deliveries and improved sales in the auto components business.
Despite external challenges, the group is optimistic that it will continue to deliver good results with the introduction of fresh vehicle models and lower borrowing costs due to a reduction in the Overnight Policy Rate.
“The heavy equipment business is expected to gain from the revival of major infrastructure projects in Malaysia while the industrial equipment business is projected to continue performing well, especially in the rental market,” said the company.
“In the M&E segment, strong demand for auto components and lubricants is expected to contribute positively to the segment while the aerospace business is steadily ramping up production to meet orders.”