KUALA LUMPUR: MBM Resources Bhd’s net profit surged 128.5% to RM42.82 million in its first quarter ended March 31, 2008, from RM18.74 million a year earlier on the back of higher motor total industry volume sales.
Revenue rose 5.7% to RM267.75 million from RM253.42 million, while earnings per share rose to 17.69 sen from 7.82 sen.
MBM’s net cash position as at March 31, 2008 totalled RM82.5 million, up from RM65.6 million as at Dec 31, 2007. Net assets per share increased to RM3.30 from RM3.16 last year.
MBM said yesterday operating profit rose 218% to RM20.9 million, which included a one-time gain of RM6.1 million from the disposal of MBM Industries Sdn Bhd, while associated companies’ profit grew 86.4% to RM30.6 million.
MBM, a distributor of cars and manufacturer of auto parts, has investments in Daihatsu (Malaysia) Sdn Bhd, Federal Auto Holdings Bhd, Perodua and Hino Motors (Malaysia) Sdn Bhd.
Speaking to reporters after its AGM here yesterday, MBM’s managing director Looi Kok Loon said he expected the company’s performance this year to match that of 2007, in which it posted a record high pre-tax profit of RM140.58 million.
“Manufacturing is about volume and this year, we have seen substantial increase in volume compared to last year as we supply parts to the main volume models of the national makes. This helps bring down costs and improve efficiency,†he said.
While Malaysian Automotive Association expects car sales to increase 4.7% this year following the positive sales trend since last June, rising oil and raw material prices would place pressure on the margins of car makers.
“Based on the sales momentum we saw in the first quarter, there seems to be a follow through from the recovery (of car sales), which started in the middle of last year.
“The manufacturing division is faced with upward cost pressures – as always there is on-going efforts to improve production efficiency to neutralise these pressures,†said Looi.
Meanwhile, in a statement, MBM said it had acquired an additional 21.52% stake comprising 1.62 million shares in its 51.8%-owned auto components maker WSA Capital Corporation Sdn Bhd from Med-Bumikar Mara Sdn Bhd for RM2 million cash.
