KUALA LUMPUR: UMW Holdings Bhd president and group CEO Datuk Ahmad Fuaad Kenali said the group was encouraged by its first quarter results in 2023, which exceeded pre-pandemic levels.
"Moving forward, the group will continue to focus on strengthening its core businesses through operational efficiency and cost management initiatives as well as accelerate its CREST@UMW initiatives to improve its business resilience.
"The group expects to deliver satisfactory performance for the financial year 2023," he said in a statement.
UMW posted a net profit of RM134.46mil in the first quarter of the financial year, up from RM101.21mil in the same quarter in 2022, as revenue jumped to RM4.38bil from RM3.65bil over the same comparative period.
The industrial conglomerate's earnings per share rose to 11.51 sen in the quarter under review from 8.66 sen in 1QFY22.
According to the group, revenue contribution from business segments rose in the double-digits across the board.
The automotive segment's revenue increased 18.1% year-on-year (y-o-y) to RM3.63bil with an increase in the number of vehicles sold.
"The demand for the automotive segment is expected to be sustained throughout the year supported by the encouraging and stable outstanding orders which was driven by higher mobility needs as the economy continues to expand.
"The announcement on the deferment of the implementation of new excise duty regulation is expected to continue to further sustain the demand for the automotive segment," said the group.
Meanwhile, the equipment segment's revenue grew 17% to RM434.9mil on the back of stronger demand in both local and overseas markets.
The manufacturing and engineering segment experienced a 42.5% surge in revenue to RM323.6mil, attributable to a higher contribution from all sub-segments, including aerospace due to the delivery of fan cases.
Going forward, UMW said the auto components and lubricants sub-segments are expected to remain strong in line with the demand for automotive products during the year.
It added that The reopening of international borders and the increase in air travel, which is expected to reach the pre-pandemic level by the end of the year, will bode well for the aerospace sub-segment.
"Rolls-Royce’s three-year forecast indicates that order numbers are expected to continue to improve beyond pre-Covid-19 levels.
"The higher forecast orders, combined with the backlog orders, will increase the plant utilisation rate and is expected to contribute positively to the Aerospace sub-segment in 2023," it said.