PETALING JAYA: UMW Holdings Bhd’s revenue for its second quarter (Q2) ended June 30, 2021, rose 59.8% to RM2.4bil year-on-year, driven by higher contribution from the group’s automotive and equipment segments.

       In a statement yesterday, UMW said it registered a pre-tax profit of RM32.6mil, compared with a pre-tax loss of RM58.8mil in the previous corresponding period, which was impacted by the first movement control order (MCO).

       “The group recorded a lower loss attributable to shareholders (Latami) of RM21.1mil for Q2 of 2021, compared with a Latami of RM78.4mil in the previous corresponding period,” it said.

       UMW said vehicle sales increased in Q2 of 2021, supported by the introduction of new models and the sales tax exemption.

       UMW said vehicle sales increased in Q2 of 2021, supported by the introduction of new models and the sales tax exemption.

       “Consequently, the automotive segment’s revenue surged by 79.8% to RM2bil compared with the corresponding quarter which was impacted by the MCO.

       “This, coupled with improved contribution from an associated company, led to a pre-tax profit of RM34.6mil in Q2 of 2021, against a pre-tax loss of RM41.7mil a year earlier.”

       Due to higher demand for its products and services in both its local and overseas operations, UMW said its equipment segment revenue increased by 28.6% to RM299.9mil in Q2 of 2021, while pre-tax profit grew 29.1% to RM31.8mil.

       “However, the Covid-19 pandemic continues to impact the performance of the equipment segment. For the heavy equipment sub-segment, the political situation in Myanmar is also expected to adversely impact its performance.

       StarCarSifu

       “Nonetheless, the higher gold prices and positive outlook for the construction sector may soften the impact on the sub-segment,” it said.

       Commenting on the group’s prospects, UMW president and group chief executive officer Datuk Ahmad Fuaad Kenali said he expects overall performance to remain challenging for the second half of the year due to the Covid-19 pandemic.

       “Nevertheless, the group will constantly assess its strategies and initiatives and continue to drive transformation, to create value and generate better returns to its shareholders.”