DRB-Hicom Q2 net loss at RM11.42m on weaker property, auto segments

The launch of the Proton X70 together with other product launches by marques within the group is expected to improve the overall sales performance of the automotive sector.

KUALA LUMPUR: DRB-Hicom Bhd posted net losses of RM11.42mil in the second quarter ended Sept 30, 2018 mainly due to lower performance of certain companies in the automotive and services sectors.

DRB-Hicom said on Thursday the net loss was in contrast with the net profit of RM742.59mil a year ago which included R&D reimbursement grant of RM1.10bil, net of Proton restructuring costs of RM325.47mil.

The group, whose core businesses are automotive, services & education and property, and construction, said revenue dipped to RM3.184bil from RM3.240bil.

“The automotive and services sectors performed better, whereas, the property sector recorded lower sales,” it said.
 
Loss per share were 0.59 sen compared with earnings per share of 38.41 sen.

It also said said the pre-tax loss of RM49.24mil in Q2 versus pre-tax loss of RM94.40mil in Q1 was mainly due to better performance of the automotive sector in the current quarter. 

For the first half ended Sept 30, it posted net losses of RM78.02mil compared with net profit of RM559.80mil in the previous corresponding period. 

Group’s revenue declined by 8.3% to RM5.84bil from RM6.37bil a year ago mainly due to lower sales recorded by automotive and property sectors. 

It explained that for the automotive sector, the decrease was largely due to sales revenue foregone following the disposal of Lotus and also lower sales of vehicles by Proton.

However, the services sector recorded higher revenue from banking and waste management businesses. 

Its property sector recorded lower revenue was mainly due to lower revenue recognised from construction related projects. 

On its outlook, DRB-Hicom said its key focus would be on the turnaround of Proton, the roll out of the national carmaker’s maiden SUV, the Proton X70 is slated for December 2018. 

The launch of the Proton X70 together with other product launches by marques within the Group is expected to improve the overall sales performance of the automotive sector. 

“Notwithstanding that the turnaround of Proton is on track, the group’s financial performance for the current financial year ending March 31, 2019 is expected to continue to be weighed down by the financial performance of Proton,” it said.