ABM Automotive 1Q profit falls 14% on competitive OEM pricing

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 15 May 2013 19:16
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KUALA LUMPUR (May 15): ABM Automotive Holdings Bhd suffered
from competitive pricing among original equipment manufacturers
(OEMs) as its net profit for the first quarter fell by 14% from a year
earlier despite an increase in revenue.
In a filing with Bursa Malaysia, the company reported net profit of
RM28.14 million for the three months ended March 31, 2013 (1QFY13),
down from the previous corresponding quarter’s RM32.57 million.
Its revenue, however, inched up by 3% to RM285.33 million from
1QFY12’s RM277.09 million.
ABM said the lower net profit was mainly due to adjusted competitive
pricing for OEMs.
On its prospects, ABM said it is experiencing an upward price trend in
parts and key raw materials, on top of the many challenges faced by
the local automotive industry, particularly on the government’s promises
on the reduction in car prices.
“Despite the above scenario, the group is cautiously optimistic that its
performance in forthcoming quarters will remain satisfactory,” said the
company.