UMW SUFFERS PRE-TAX LOSS OF RM121.62 MLN IN Q3

KUALA LUMPUR, Nov 30 (Bernama) -- UMW Holdings Bhd suffers a pre-tax loss of
RM121.62 million in the third quarter ended Sept 30, 2016 compared a pre-tax
profit of RM72.24 million in the same quarter a year ago.
    Revenue fell to RM2.86 billion from RM3.53 billion previously, it said in a
filing to Bursa Malaysia here today.
    "The lower revenue was due to the challenging economic environment in the
oil and gas (O&G) industry coupled with the weak ringgit which had impacted the
group's results," it said.
    In a statement, President/Group Chief Executive Officer, Badrul Feisel Abdul
Rahim, said the group's performance was hit by the present downturn in the O&G
industry, softer local demand for motor vehicles and the weakening ringgit.
    The O&G (unlisted) segment registered a lower revenue of RM58.4 million in
the current quarter from RM70.0 million in the same quarter of 2015 due to the
impact of continued low oil prices, he said.
    Badrul said the moror vehicle segment's revenue fell to RM2.26 billion from
RM2.60 billion due to soft market sentiments and intense competition from other
car makers.
    The equipment segment posted a lower revenue of RM342.8 million against
RM474.8 million due to the decline in equipment sales resulting from the
slowdown in the mining sector and stiff competition in the construction sector, he said.
    He said the sales performance in Myanmar was weighed down by the continued
restriction imposed on the import of heavy equipment by the government of Myanmar.
    The manufacturing and engineering segment recorded a lower revenue of
RM144.6 million in the current quarter compared with RM183.8 million in the
previous year s corresponding quarter, he said.  
    Badrul said the challenges and uncertainties in the current business
environment might add pressure for asset impairment in the last quarter of the
year, hence, might adversely impact the group s results.  
    "Nevertheless, the management will take appropriate measures to contain
cost, increase operational efficiency and continue to improve business
potentials," he said.

 -- BERNAMA