DRB-Hicom reported that its automotive division posted a loss of RM456.24mil and its investment holdings reported a loss of RM76.59mil. However, its services division posted a profit of RM238.96mil while property, asset and construction accounted for RM402.19mil in profit.
PETALING JAYA: DRB-Hicom Bhd returned to profitability in its third quarter ended Dec 31, 2016, boosted by the sale of property in Singapore. The conglomerate, however, was still in the red for the nine-month period due to losses in the automotive division.
The company recorded earnings of RM352.98mil for the quarter compared with net losses of RM186.18mil a year ago.
Earnings per share was at 18.26 sen compared with a loss per share of 9.63 sen a year ago.
Revenue rose 2.8% to RM3.43bil from RM3.33bil mainly due to the first-time recognition of revenue contributed by Pos Malaysia Bhd as a subsidiary company.
On Nov 15, 2016, its unit Hicom Megah Sdn Bhd completed the disposal of its entire 90% stake in Corwin Holding Pte Ltd for S$170.90mil, enabling the group to realise a gain on disposal of RM398.11mil.
It had cash and cash equivalents of RM2.95bil as at Dec 31, 2016.
“Nevertheless, the group’s performance for the fourth quarter ending March 31, 2017 will remain challenging,” it cautioned.
For the nine months, it reported a net loss of RM125.95mil, sharply lower than the RM202mil loss in the previous corresponding period. However, its revenue saw a 10.1% decline to RM8.57bil from RM9.54bil.
DRB-Hicom reported that its automotive division posted a loss of RM456.24mil and its investment holdings reported a loss of RM76.59mil.
However, its services division posted a profit of RM238.96mil while property, asset and construction accounted for RM402.19mil in profit.
The group is currently undertaking a detailed evaluation of the bids received from the foreign strategic partner (FSP) for the loss-making Proton Holdings Bhd.
The selected FSP will assist Proton to become more competitive through access to new technologies, markets and best practices.
“The group aims to conclude the selection of the FSP by the first half of this year,” it said.
“In view of the challenging economic environment, the group will continue to focus on business consolidation in its pursuit of operational excellence, as well as prudent financial management to improve the group’s performance,” it said.
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