UMW Holdings the maker of Toyota car and even Perodua in Malaysia expect their performance to be better this year due to a better economic outlook for the second half of 2000. Read the full news from Bernama below.
UMW EXPECTS BETTER PERFROMANCE FOR SECOND HALF OF 2009
KUALA LUMPUR, — UMW Holdings Bhd (UMW) expects its performance for this year to be satisfactory, albeit lower than that of the record 2008, in view of the better economic outlook for the second half of 2009 and the strengthening of ringgit against greenback.
In a filing to Bursa Malaysia, UMW said its internal Key Performance Index targets for 2009 were likely to be achieved with programmes to increase sales volume and cost-saving measures to improve margins.
It said the higher level of vehicle sales for the second quarter ended June 30, 2009 versus the first quarter would continue into the second half of 2009 as reflected in the increase in new orders for Toyota and Perodua vehicles.
UMW said the Malaysian Automotive Association has revised the 2009 total industry volume forecast upwards, from 480,000 to 500,000 units in view of the improved consumer sentiment.
It said demand for its industrial and heavy equipment was expected to improve further with the roll-out of some projects from the Iskandar Development Corridor, Pahang-Selangor Interstate Raw Water Transfer and Klang Valley light rail transit extension and upgrading under the Ninth Malaysia Plan.
“Some of our recent investments in the oil and gas segment have started to contribute positively to our profit in the second quarter,” it said.
They included the Zhongyou BSS plant, a joint venture with China National Petroleum Corp’s unit, three land rigs in Assam, India as well as power generator design and application projects through Synergistic Generation Sdn Bhd, it said.
UMW’s pre-tax profit for second quarter ended June 30, 2009 fell to RM185.468 million from RM354.998 million in the same period last year.
Its revenue declined to RM2.581 billion from RM3.568 billion previously.
Earnings per share fell to 7.24 sen from 14.08 sen previously.
It said the decline in spending by consumers and industrial sectors due to the global economic downturn resulted in the lower revenue recorded by the automotive, equipment and manufacturing as well as engineering segments.
“The weakening of ringgit against the US dollar and yen also affected profit margins,” it said.