UMW'S NET PROFIT FELL TO RM204 MLN IN FY20

KUALA LUMPUR, Feb 25 -- UMW Holdings Bhd's (UMW) net profit by fell more than half to RM204.6 million in the financial year ended Dec 31, 2020 (FY20) from RM454.4 million in FY19.

Revenue declined to RM9.55 billion from RM11.76 billion previously, mainly due to lower revenue recorded in all of its main business segments due to the COVID-19 pandemic’s adverse impact, it said in a filing with Bursa Malaysia today. 

It said the automotive segment’s revenue for the year decreased by 19.5 percent year-on-year to RM7.48 billion, mainly due to the lower number of vehicles sold during the Movement Control Order (MCO) period.

Meanwhile, it said equipment segment’s revenue stood at RM1.14 billion, lower than the RM1.41 billion recorded in FY19, following the slow down in construction, manufacturing, mining and logging activities due to the COVID-19’s impact in countries that the segment operated in.

Additionally, UMW said the manufacturing and engineering segment's revenue dropped to RM918.3 million from RM1.06 billion previously, due to the lower contribution from all sub-segments which were impacted by the pandemic.

In terms of its fourth quarter’s (Q4 2020) performance, its net profit depreciated to RM137.44 million from RM200.46 million in Q4 2019, while revenue was higher at RM3.24 billion from RM3.12 billion previously.

It said the increase in revenue was mainly due to higher sales in the automotive segment, following the implementation of the Recovery Movement Control Order during the quarter. 

“Despite the roll-out of vaccines for COVID-19, the group expects the recovery of businesses domestically and globally to be gradual and the environment will continue to remain challenging.

“Nonetheless, the group will constantly assess its strategies and initiatives as well as continuing to intensify cost optimisation across the group to improve its resilience,” it added.

-- BERNAMA