KUALA LUMPUR: Lower sales from both motor trading and auto parts manufacturing dragged MBM Resources Bhd’s net profit down 6.5% to RM29.22 million or 7.48 sen per share in the second quarter ended June 30, 2015 (2QFY15) from RM31.24 million or 8 sen a share in 2QFY14.

The decline in demand was in line with lower total industry volume and total industry production, it said in a Bursa Malaysia filing yesterday. Revenue for 2QFY15 declined 23.9% to RM374.41 million against RM492.17 million.

It also declared an interim dividend of four sen per share and a special dividend of three sen per share for the financial year ending Dec 31, 2015.

For the six months ended June 30 (1HFY15), net profit came in at RM64.37 million, up 17.8% from RM54.67 million a year ago. Revenue also grew 2.8% to RM966.15 million in 1HFY15 from RM939.53 million in 1HFY14.

MBM’s motor trading performance was affected by slow demand after the implementation of the goods and services tax, while its auto parts manufacturing saw lower revenue due to lower demand from major carmakers and impact from the weaker ringgit.

The group said uncertain economic conditions will continue to affect consumer sentiment, while the weakness of the ringgit will result in higher operating costs for the group. It will continue to focus on cost management and improving after sales revenues, and grow its market share from new models.

This article first appeared in digitaledge Daily, on August 20, 2015.