by S BIRRUNTHA / pic by MUHD AMIN NAHARUL
UMW Holdings Bhd’s earnings surged 119% to RM97.27 million for the first quarter ended March 31, 2021 (1Q21), from RM44.32 million in the preceding quarter as the automotive group sold more vehicles.
Its automotive revenue rose 51% year-on-year (YoY) to RM1.58 billion due to the higher number of vehicles sold during the current quarter following the extension of the sales tax exemption until June 30, 2021.
In line with higher revenue and share of profit from an associated company, the segment also recorded a profit before tax of RM145.5 million compared to RM53.7 million in the corresponding quarter.
In a filing to Bursa Malaysia yesterday, UMW noted its revenue for the period rose 39% YoY to RM2.96 billion.
Earnings per share for the period also jumped 120% to 8.33 sen. No dividends were declared by the group.
UMW’s equipment business recorded a revenue of RM332.5 million in the period versus RM289.2 million in the corresponding quarter, driven by improved demand for the segment’s products and services in the local and overseas market following the relaxation of the Movement Control Order in the quarter.
Its manufacturing and engineering segment recorded a revenue of RM230.3 million which was lower than the RM248.5 million reported in the corresponding period, mainly due to lower contribution from its aerospace sub-segment following lower fan cases delivered.
On its current prospects, UMW stated the group expects the overall business recovery to be gradual as the business environment continues to remain challenging as the impact of the Covid-19 pandemic lingers on.
UMW intends to assess its strategies and initiatives to mitigate the challenges and to intensify efforts to improve its cost effectiveness, competitiveness and resilience.
The group’s automotive segment is expected to benefit from the extension of the sales tax exemption, introduction of new models, planned seasonal campaigns and a low interest-rate environment.
UMW added the performance of an associated company is expected to remain strong due to the continuous strong demand for vehicles.