DRB-Hicom posts nine-month net profit of RM509mil

PETALING JAYA: DRB-Hicom Bhd recorded a net profit of RM508.71mil for the nine months ended Dec 31, 2017 despite losses in the third quarter due to a one-off impairments at Proton Holdings Bhd.

The group said its nine-month earnings were a turnaround from the net losses of RM127.07mil in the previous corresponding period.

Revenue, meanwhile, was higher at RM9.72bil compared with RM8.57bil a year ago. DRB-Hicom said its pre-tax profit jumped to RM557.77mil compared with pre-tax profit of RM30.69mil.

“The improvement in the financial results was mainly attributable to the recognition of R&D grant and better financial performance of operating companies.

“However, the one-off impairment charges of certain intangible assets and potential claims thereon relating to Proton and also the loss on disposal of Lotus Advance Technologies Sdn Bhd reduced the overall profits,” it said.

The group said in the third quarter, it posted net losses of RM58.15mil compared with earnings of RM351.86mil a year ago. Its revenue was lower at RM3.04bil compared with 3.43bil a year ago.

“The third quarter performance was also impacted by a one-off impairment at Proton, where charges for certain product development costs as well as potential claims related to the same were recognised in the quarter ended Dec 31, 2017,” it said. DRB-Hicom said included in the corresponding quarter’s financial result was the gain on disposal of Corwin Holding Pte Ltd of RM398.11mil.

Its shares traded five sen lower to RM2.62 yesterday.