KUALA LUMPUR (Feb 28): DRB-Hicom Bhd reported a net loss of RM58.15 million for its third quarter ended Dec 31, 2017 (3QFY18) compared to a net profit of RM351.86 million a year ago due to a slump in sales in its automotive segment and a one-off impairment at Proton.

Quarterly revenue slipped 11.2% to RM3.05 billion versus RM3.43 billion a year ago due to lower automotive sales as well as reduced contribution from a banking subsidiary, the group reported in a filing with the stock exchange today.

The group’s automotive segment saw revenue decline by 23.22%, with the traditional December sales slipping almost 16% year-on-year, DRB-Hicom said, noting that the group’s results mirror the industry’s soft climate.

Meanwhile, product development costs as well as potential claims related to it at Proton had helped drag the group into a loss per share of 3.01 sen versus an earnings per share of 18.2 sen last year.

DRB-Hicom also noted that its earnings in the previous corresponding quarter had included a RM39.11 million gain on disposal of Corwin Holding Pte Ltd.

For the nine-month period ended Dec 31, 2017 (9MFY18), the diversified group posted a net profit of RM508.71 million compared to a net loss of RM127.07 million a year earlier, mainly due to the recognition of a research and development grant and better financial performance of its operating companies.

Accumulative revenue expanded 13.42% to RM9.73 billion versus  revenue of RM8.58 billion last year as improved numbers from Pos Malaysia Bhd and DRB-Hicom’s property sector boosted performance.

Going forward, DRB-Hicom, whose share price shot up to a three-year high of RM2.73 in January, said it expects performance for its financial year ending March 31, 2018 (FY18) to be better than its previous year’s results. The group pursues various opportunities to expand its business activities with a key focus on growth in logistics, ecommerce, aviation and banking.

“Nevertheless, for the automotive industry, stiff market competition, stringent hire purchase approvals, higher interest rates, among others, remain as challenges,” DRB-Hicom said, adding that it would be steadfast in ensuring effective cost and financial management across all its companies.

Year to date, DRB-Hicom’s share price has gained 16.44%. It closed at RM2.62 today, down five sen or 1.87%, giving the group a market capitalisation of RM5.07 billion.