DRB-Hi­com posts RM309m net loss in Q2

The Sun (Malaysia) - - MEDIA & MARKETING -

PE­TAL­ING JAYA: DRB-Hi­com Bhd swung to the red reg­is­ter­ing a net loss of RM309.63 mil­lion for the sec­ond quar­ter ended Sept 30, 2016 ver­sus a net profit of RM3.9 mil­lion in the last cor­re­spond­ing pe­riod, dragged down by weak per­for­mance in the au­to­mo­tive and de­fence sec­tors, un­re­alised forex losses and a one-off ex­cep­tional loss on re-mea­sure­ment of pre­vi­ously held eq­uity in­ter­est in Pos Malaysia Bhd.

Rev­enue for the quar­ter un­der re­view fell 18.7% from RM3.25 bil­lion to RM2.64 bil­lion.

In a fil­ing with the stock ex­change, the group said the re-mea­sure­ment loss of RM130 mil­lion aris­ing from its stake in Pos Malaysia was in ac­cor­dance with Fi­nan­cial Re­port­ing Stan­dard 3 on Busi­ness Com­bi­na­tions.

It noted that the un­re­alised forex losses, aris­ing from the re-trans­la­tion of cer­tain payables and bor­row­ings de­nom­i­nated in for­eign cur­ren­cies, was due to the re­cent ad­verse for­eign cur­rency move­ments.

Mean­while, DRB-Hi­com said the de­cline in to­tal in­dus­try vol­ume by 13.8% in the nine months of 2016 has im­pacted the per­for­mance of the au­to­mo­tive in­dus­try.

None­the­less, the group said it is pos­i­tive on its search for a for­eign strate­gic part­ner for its au­to­mo­tive arm Pro­ton Hold­ings Bhd, with now ar­riv­ing at a short­list of three global au­to­mo­tive com­pa­nies.

DRB-Hi­com ex­pects Pro­ton’s per­for­mance to im­prove on the back of the suc­cess­ful launch of its four new mod­els.

“Cost man­age­ment ef­forts along with op­er­a­tional ef­fi­ciency ini­tia­tives re­main in place as the group moves to im­prove its per­for­mance,” it said.

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