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Revenue decreased to RM2.02 billion from RM2.66 billion, mainly due to lower sales in the automotive as well as manufacturing and engineering segments during the quarter, where only certain operations of the group were allowed to operate with limited capacity with the easing of the movement restrictions from Aug 16.
The automotive segment recorded revenue of RM1.59 billion, 25.2% lower than the RM2.13 billion reported in the corresponding quarter, mainly due to a lower volume of vehicles sold in the current quarter.
On the current prospects of the automotive segment, the company said it is ramping up production to meet the encouraging outstanding order book.
“Demand for automotive products is expected to continue to remain strong following the extension of the sales tax exemption.
“Introduction of new models, including the hybrid electric vehicles, as well as the year-end sales promotion are expected to drive stronger sales in the final quarter of the year,” it said.
UMW said the prospects for auto components and lubricants sub-segments are gradually improving as disruptions to the supply chain have progressively eased and businesses have started to ramp up production.
The group expects the business environment to continue to remain challenging for the remainder of the year and will continue to manage the negative impact of the Covid-19 pandemic on its operations.
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