KUALA LUMPUR: UMW Holdings Bhd returned to black in its financial year ended Dec 31, 2018 (FY18), with a net profit of RM341.66 million compared to a net loss of RM640.61 million a year earlier, thanks to better performance in three core segments and the reversal of provisions which bogged down the year-ago’s earnings.
Revenue rose 2.2% to RM11.31 billion from RM11.07 billion, its stock exchange filing showed. The group also posted a lower loss before tax from discontinued operations of RM161.1 million, as compared to RM803.4 million a year ago.
It announced a final dividend of 2.5 sen per share for FY18, bringing the total payout for the year to 75 sen, its stock exchange filing showed.
In its fourth quarter ended Dec 31, 2018 (4QFY18), despite lower revenue, the group recorded a net profit of RM15.07 million, versus a net loss of RM422.11 million a year ago, on higher contribution from the manufacturing and engineering segment, and lower provisions.
It also recorded a profit before tax from discontinued operations of RM2.3 million, compared to a loss of RM411.8 million in the same quarter a year ago.
Quarterly revenue fell 9.9% to RM2.68 billion from RM2.97 billion a year ago, largely due to the lower number of vehicles sold under the automotive segment, which was impacted by the reintroduction of the sales and service tax in September.
Going forward, the group expects the automotive segment to perform satisfactorily in FY19, on the commencement of new plant operations and the launch of new models. The equipment segment, meanwhile, is expected to remain profitable, supported by demand in the mining and logging industries and strong performance in the rental equipment business.
As for the manufacturing and engineering segment, the group said it should perform better in FY19 as it looks to enhance market penetration in Asean for the lubricant business, while the aerospace business will see a ramp-up in production to service its Rolls-Royce contract.