The Malaysian Reserve

DRB-Hicom’s 4Q18 hit by Proton’s restructuring

Wisma DRB-Hicom at Shah Alam Selangor (Pic By Muhd Amin Naharul/TMR)

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

DRB-Hicom Bhd noted the restructuring of Proton Holdings Bhd hit its financial business, leading it to post a narrower net loss of RM10.27 million in the fourth quarter ended March 31, 2018 (4Q18) compared to a net loss of RM329.57 recorded a year ago for the same period.

Revenue for the three months dropped 12% year-on-year (YoY) to RM3.06 billion due to lower sales of Proton and other automotive makes.

The financial quarter saw an improved performance by the group’s courier and logistics businesses under Pos Malaysia Bhd and higher sales from Alam Flora Sdn Bhd, an exchange filing yesterday noted.

The increase in revenue for the property, asset and construction sector was mainly attributed to revenue recognised from construction-related projects.

With sustained economic growth forecast for 2018 and positive spillover into domestic economic activity, the group’s overall businesses are expected to improve moving forward.

“The group’s automotive sector aims to enhance its performance through launches of new models and facelifts by marques within its stable.

“The aerospace business via the composite manufacturing arm is undergoing business expansion which is also on track to achieve higher growth going forward,” DRBHicom noted in a release yesterday.

It expects its services sector to benefit from sustained expansion in the logistics, banking and concession businesses.

DRB-Hicom noted the rationalisation exercise of its non-industrial property assets is expected to be completed by the end of the current financial year, in line with the group’s strategic direction to have a leaner property portfolio focusing on industrial land.

The group has declared a dividend payout of three sen a share for the said financial year with the payment date to be announced later.