UMW Holdings Bhd posted a net profit of RM124.38 million for its second quarter ended June 30, 2018, (2Q18) against a net loss of RM209.3 million in 2Q17, on higher automotive revenue, reversal of provisions and discontinued oil and gas operations.
Revenue for the period grew 5.8% year-on-year (YoY) to RM2.92 billion over the same period.
Turnover for the quarter was supported by its core automotive sector which benefitted from increased sales following the zero-rating of the Goods and Services Tax in June this year, the group noted in an exchange filing yesterday.
Group revenue for the first half of the year (1H18) fell 2.2% YoY to RM5.33 billion due to the lower total industry volume experienced in 1Q18.
Net profit for the period was RM198.46 million against the net loss of RM189.14 million in 1H17.
The company expects the reintroduction of the Sales and Services Tax next month to impact consumer demand for cars, while the ongoing review of mega infrastructure projects will reduce demand for its equipment business.
UMW noted its current orderbook will support the equipment business going into 2H18, while the manufacturing of auto-components is anticipated to be strong both in local and export markets for its manufacturing and engineer- ing division. — TMR