UMW 2Q net profit falls 38% to RM131.18 million, declares 10c interim dividend

KUALA LUMPUR: UMW HOLDINGS BHD [] net profit for the second quarter ended June 30, 2011 fell 38% to RM131.18 million from RM211.69 million a year earlier, due mainly to lower contributions from its automotive and manufacturing & engineering segments.

Revenue for the quarter dipped to RM3.17 billion from RM2.28 billion in 2010. Earnings per share was 11.26 sen while net assets per share was RM3.66.

The company declared an interim single-tier dividend of 10 sen per share of 50 sen each for the financial year ending Dec 31, 2011.

For the six months ended June 30, UMW’s net profit fell to RM283.01 million from RM344.55 million in 2010, on the back of revenue of RM6.39 billion.

Reviewing its performance on Friday, Aug 19, UMW said the performance of both Toyota and Perodua was expected to improve in 2H2011, and that profit contributions from the automotive segment was expected to be in line with its original 2011 internal target.

However, it said both revenue and profit from the manufacturing and engineering segment for 2011 were expected to be lower due the slow-down in vehicle sales caused by the tsunami in Japan.

Meanwhile, unfavourable fair value movements of some of its investments quoted overseas and hedging instruments due to external factors beyond its control may affect the overall performance of the oil and gas segment, it said.

“Performance of the group may be affected by the recent downgrading of US credit rating as any slow-down in the US economy is likely to have a negative impact on the Malaysian economy.

“Nevertheless, the board is of the view that our internal targets for 2011 are achievable given that the group us progressing satisfactorily in accordance with its business recovery plans,” it said.