KUALA LUMPUR, 27 February 2019 – UMW Holdings Berhad’s Group profit before taxation (PBT) from Continuing Operations surged almost three-fold to RM786.2 million, powered by better performance from all three core business segments and the reversal of provisions, while revenue increased by 2.2% to RM11,306.3 million for financial year 2018. The Automotive segment’s PBT was strengthened by the improved performance of an associate company coupled with improved profit margin from cost optimisation activities, while the performance of the Equipment segment was boosted by higher sales in the mining and logging industries. The aerospace business continued to deliver fan cases as per its contractual agreement with Rolls-Royce, thus generating higher revenue for the Manufacturing & Engineering (M&E) segment. Consequently, net profit from Continuing Operations rose to RM490.6 million in 2018 compared to RM35.3 million in 2017. Overall, the Group’s consolidated net profit soared to RM341.7 million compared to a loss of RM640.6 million a year ago.

– Group profit before taxation from Continuing Operations surged almost three-fold to RM786.2 million while revenue increased by 2.2% compared with 2017
– Automotive segment’s profit before taxation increased by 22.2%
– Equipment segment’s profit before taxation grew by 6.5%
– Manufacturing & Engineering segment turned profitable, mainly contributed by higher revenue and better profit margin earned from cost optimisation.

UMW Holdings Berhad President & Group CEO, Badrul Feisal bin Abdul Rahim said, “For the financial year 2018, the Group has achieved a robust recovery and registered a healthy profit. The commendable results of our three core businesses coupled with strategic initiatives to boost growth put the Group in a firm position to achieve greater heights and emerge as a leading industrial conglomerate in the region. We have also embarked on a vigorous Group-wide transformation programme to drive long-term growth through expansion of products and services and nurturing innovation across the organisation in order to remain relevant in the ever-changing business environment.”

For the fourth quarter of 2018, the Group registered a consolidated PBT of RM106.2 million compared to a loss before taxation of RM381.7 million registered in the corresponding quarter of the previous year. The M&E segment returned to profitability with positive contribution driven by higher revenue, while Automotive and Equipment segments registered lower PBT in the final quarter of 2018.

Discontinued Operations posted a PBT of RM2.3 million in the fourth quarter of 2018. For the full-year, Discontinued Operations registered a loss before taxation of RM161.1 million, significantly lower than the RM803.4 million recorded in 2017. The losses were due to operating expenses incurred while the winding down of operations are being undertaken in stages, in line with the Group’s exit strategy from the Unlisted Oil & Gas segment.

The Automotive segment’s full-year revenue decreased marginally to RM8,949.2 million due to lower number of vehicles sold. However, PBT improved by 22.2% to RM545.1 million mainly contributed by better performance from an associate company and improved profit margin due to cost optimisation activities.

For financial year 2018, the Equipment segment’s revenue increased by 6.9% to RM1,540.2 million while PBT improved by 6.5% to RM152.3 million. The enhanced performance of the segment was boosted by higher sales in the mining and logging industries.

M&E segment’s full-year revenue contribution surged by 30.7% to RM842.8 million while PBT rose to RM21.6 million. The improved performance was underpinned by higher revenue from the Aerospace business as well as better profit margin generated from cost optimisation initiatives.

The company has declared a final single-tier dividend of 2.5 sen per share for the financial year ended 31 December 2018. The payment date and entitlement date for the final single-tier dividend will be determined and announced at a later date. This brings the total dividend pay-out for financial year 2018 to 7.5 sen per share.

Moving forward, while the business environment remains challenging, the Group will endeavour to continue delivering good results. The introduction of fresh and exciting models from its new automotive assembly plant is expected to boost the sales of Toyota vehicles in 2019. Sustained demand in the mining and logging industries is expected to have a positive impact on the Heavy Equipment business in the coming year. The Industrial Equipment business is projected to continue performing well in the rental sector. In the M&E segment, efforts are ongoing to enhance and strengthen market penetration into other ASEAN countries and intensifying efforts to improve profitability through cost optimisation activities whilst the Aerospace business is steadily ramping up production to meet orders.