UMW sees pre-tax loss of RM121.62 million in third quarter
KUALA LUMPUR: UMW Holdings Bhd suffers from a pretax loss of RM121.62 million in the third quarter ended Sept 30, 2016 compared a pre-tax profit of RM72.24 million in the same quarter a year ago.
Revenue fell to RM2.86 billion from RM3.53 billion previously, it said in a filing to Bursa Malaysia yesterday.
“The lower revenue was due to the challenging economic environment in the oil and gas (O&G) industry coupled with the weak ringgit which had impacted the group's results,” it said.
In a statement, president/group chief executive officer, Badrul Feisel Abdul Rahim, said the group's performance was hit by the present downturn in the O&G industry, softer local demand for motor vehicles and the weakening ringgit.
The O&G (unlisted) segment registered a lower revenue of RM58.4 million in the current quarter from RM70.0 million in the same quarter of 2015 due to the impact of continued low oil prices, he said.
Badrul said the motor vehicle segment's revenue fell to RM2.26 billion from RM2.60 billion due to soft market sentiments and intense competition from other car makers.
The equipment segment posted a lower revenue of RM342.8 million against RM474.8 million due to the decline in equipment sales resulting from the slowdown in the mining sector and stiff competition in the construction sector, he said.
He said the sales performance in Myanmar was weighed down by the continued restriction imposed on the import of heavy equipment by the government of Myanmar.
The manufacturing and engineering segment recorded a lower revenue of RM144.6 million in the current quarter compared with RM183.8 million in the previous year's corresponding quarter.
Badrul added the challenges and uncertainties in the current business environment might add pressure for asset impairment in the last quarter of the year, hence, might adversely impact the group's results.
“Nevertheless, the management will take appropriate measures to contain cost, increase operational efficiency and continue to improve business potentials,” he said. — Bernama