DRB-HICOM pre-tax profit for Q2 slips to RM162.66m

KUALA LUMPUR, Nov 29 — DRB-HICOM Bhd’s pre-tax profit for the second quarter ended Sept 30, 2012 slipped to RM162.66 million from RM164.06 million recorded in the same quarter last year.

However, revenue rose more than double to RM3.54 billion from RM1.48 billion previously, the company said in a filing to Bursa Malaysia today.

The group said it revenue for the period ended Sept 30, 2012 rose to RM7 billion from RM3.06 billion in the same period ended Sept 30 last year.

The group’s 129 per cent rise in revenue was mainly attributable to the inclusion of sales revenue of Proton Holdings Bhd, it said in a statement.

“However, the additional finance cost due to new borrowings taken for the acquisition of Proton and lower profit contribution from the automotive sector had resulted in a 16 per cent dip in group pre-tax profit of RM260.58 million for the period under review compared to RM310.37 million previously,” it said.

Group managing director Datuk Seri Mohd Khamil Jamil said the group was implementing several initiatives to streamline and align the group’s businesses, operations and investments.

It includes, among others, the business and operational rationalisation in the retail and after-sale-services of Proton vehicles in Edaran Otomobil Nasional Bhd and Proton Edar Sdn Bhd, he said.

“The group’s disposal of its wholly-owned subsidiary HICOM Power Sdn Bhd’s businesses for RM575 million is also a step towards streamlining the group’s businesses,” he said.

Khamil said the disposal, which has been approved by shareholders on Monday, will reduce borrowings and interest expense for the group.

“We will continuously find ways to create greater group-wide synergistic benefits towards achieving greater efficiency and cost savings, as well as strengthening the group’s businesses,” he added. — Bernama


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