Group boosted by significant first contribution from Hirotako, strong performance by Federal Auto
Kuala Lumpur, May 24, 2012 – MBM Resources Berhad(MBMR), which is aiming to be one of the leading and most complete automotive groups in Malaysia and the region, has posted a strong first quarter despite the automotive industry facing some daunting challenges.
MBMR’s revenue for the quarter ended 31 March 2012 increased by 32.7 per cent to RM543.7 million from RM409.8 million in 1Q2011. Profit before tax rose 21.2 per cent to RM56.2 million from RM46.4 million in the corresponding quarter last year.
The strong performance reflected for the first time, the significant contribution of the recently acquired automotive safety equipment manufacturer, Hirotako Holdings Berhad. Another major contributor was the Federal Auto Group, whose sales increased by 54.6 per cent compared against 2011, driven by strong and growing demand for Volkswagen and Volvo cars.
Both combined to mitigate the effects of lower margins from growing competition as well as a declining automotive market under pressure from tightening credit that has affected the sales of Perodua cars.
MBMR group managing director Looi Kok Loon said that the strong first quarter performance proved that the group’s strategic expansion plan, which included the acquisition of Hirotako, and the decision to invest in strong representation in almost every market segment were paying off.
“Although registrations of Perodua cars have been down despite healthy order taking, we were able to balance it with strong sales of both Volkswagen and Volvo cars, which grew by 108 per cent and 22 per cent respectively year on year. Thus, we still managed to grow total vehicles sales by 0.1 per cent although the Malaysian motor total industry volume (TIV) for the quarter was down by 12.6 per cent,†he said.
Looi added that the first revenue and profit contributions from Hirotako also proved timely and helped balanced the group’s earnings profile from being overly dependent on associates.
“Our long term expansion plans remain firmly on schedule. Construction of Oriental Metal Industries’ alloy wheel plant is progressing well and we will continue to invest in expanding our dealership network,†he said.
MBMR, which has been synonymous with the Daihatsu brand since its inception, has evolved into a diverse automotive group that represents some of the biggest international brands in Malaysia. They include commercial vehicle brands Daihatsu and Hino; passenger car brands Perodua, Volvo, Volkswagen and Mitsubishi; and sports tuning brands, ABT and HeicoSportiv.
It is the leader in every market segment it competes in, with products that range from light, medium and heavy duty trucks and buses to entry-level compact cars and luxury sports utility vehicles.
By 2015, MBMR plans to become one of the leading and most complete automotive groups in Malaysia with a full spectrum of capabilities that include manufacturing and assembly, distribution, retail and dealerships, parts and accessories, body and paint repair and customer services.
