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KUALA LUMPUR: DRB-Hicom Bhd’s net profit came in substantially lower at RM70.6 million for the fourth quarter ended March 31 (4QFY13), down 95% from RM1.3 billion in the previous corresponding quarter.
The sharp fall in earnings is mainly due to the recognised “negative goodwill” of RM1.27 billion from the acquisition of Proton Holdings Bhd in 4QFY12 that had lifted its earnings substantially.
On a cumulative basis, DRB-Hicom posted net profit of RM575.3 million or 29.76 sen per share for full FY13, compared with RM1.59 billion, or 82.6 sen per share, in FY12. Revenue expanded to RM13.13 billion for FY13 from RM6.87 billion in FY12.
The diversified group’s annual operating profit (before exceptional items) rose by 15% to RM624.82 million from RM543.44 million in the preceding financial year.
The higher operating profit was attributed to the better financial performance of subsidiary companies and higher share of results of associated companies.
Revenue generated at the auto division more than doubled to RM10.13 billion in FY13 from the previous year’s RM4.06 billion.
DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil said in a statement yesterday: “We are able to leverage the property, assets and construction sector as well as the services sector to provide consistent earnings to drive the group’s growth for the future, as evident in the financial performance,” he said.
“The group will continue harnessing its diversity to enhance and strengthen the overall financial and operational performance.”
Looking forward, the group said it will continue to pursue various business initiatives to enhance and strengthen its financial and operational performance, on the back of strong domestic demand.
The total industry volume of motor vehicles rose 12.8% to 210,153 units for the first four months of 2013, compared to 186,318 units for the corresponding period last year.
“Economic activities will be anchored by the continued resilience of the domestic demand, supported by a gradual improvement in the external sector,” DRB-Hicom said in a filing with Bursa Malaysia.
This article first appeared in The Edge Financial Daily, on May 31, 2013.
