KUALA LUMPUR: UMW Holdings Bhd's net profit surged 71.9 per cent to RM173.11 million in the third quarter ended Sept 30, 2023 (3Q23) from RM100.7 million a year ago on the back of higher revenue.
Its quarterly revenue rose 19 per cent to RM4.83 billion from RM4.06 billion previously, according to the group's filing to Bursa Malaysia today.
As a result, UMW registered higher earnings per share of 14.82 sen compared to 8.62 sen in 3Q22.
The group's automotive segment revenue for 3Q23 increased 17.4 per cent to RM4.02 billion from the RM3.43 billion recorded in the corresponding quarter, mainly due to the higher number of vehicles sold.
The equipment segment's revenue increased by 14.6 per cent to RM452 million in 3Q23 due to the sustained demand for equipment in both local and overseas markets.
The manufacturing and engineering (M&E) segment registered revenue of RM363.8 million for the quarter, 44.3 per cent higher than the RM252.2 million recorded previously, underpinned by the higher contribution from the aerospace sub-segment due to higher delivery of fan cases.
For the nine-month fperiod, UMW's net profit increased to RM611.12 million from RM309.1 million a year ago, while revenue increased to RM13.7 billion from RM11.44 billion.
UMW said the auto components and lubricants sub-segments are expected to benefit from the sustained demand in the original equipment (OE) market, in line with the expected higher demand for new vehicles in the last quarter of the year.
The reopening of international borders and the increase in air travel which is expected to reach close to 95 per cent of the pre-pandemic level by the end of this year will bode well for the aerospace sub-segment.
"Rolls-Royce's three-year forecast indicates that orders for aircraft are expected to continue to improve beyond the pre-Covid-19 level.
"The higher forecasted orders for fan cases will increase the plant utilisation rate and are expected to contribute positively to the aerospace sub-segment for the remainder of the year," it said in a separate statement.
UMW said the group is pleased with its strong performance in 3Q23 as all three core business segments registered improved results.
Moving forward, the group will continue to focus on strengthening its businesses through operational efficiency and cost management initiatives as well as accelerate its CREST@UMW initiatives to improve its resilience and sustainability.
The group also expects to deliver satisfactory performance for the year.
