DRB-HICOM Berhad Reports Unaudited Consolidated Earnings Results for the First Quarter Ended June 30, 2012; Faces Lawsuit by Former Group Lotus Chief Dany Bahar; Provides Group Earnings Guidance for the Fiscal Year Ending March 31, 2013
August 28, 2012 at 10:22 am
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DRB-HICOM Berhad reports unaudited consolidated earnings results for the first quarter ended June 30, 2012. The company reported a more than doubling of its revenue year-on-year to MYR 3.46 billion for the first quarter ended in June 2012 after it included Proton Holdings' revenue in the period under review. However, the group's pre-tax profit dropped to MYR 97.9 million from MYR 146.3 million a year ago, mainly due to the higher finance cost following the acquisition of Proton as well as the losses incurred by Proton's wholly owned subsidiary, Lotus. Profit from operations was MYR 132.54 million against MYR 127.62 million a year ago. Net profit attributable to owners of the company was MYR 32.6 million against MYR 91.07 million a year ago. Basic earnings per share were 1.69 sen against 4.71 sen a year ago. Net cash outflow from operating activities was MYR 3,867.5 million against MYR 2,152.49 million a year ago. Purchase of property, plant and equipment/intangible assets/investment properties was MYR 266.54 million against MYR 53.95 million a year ago. Acquisition of investments/land held for property development was MYR 166.99 million against MYR 239.9 million a year ago.
Meanwhile, the group announced that it is being sued for alleged wrongful dismissal by the former chief executive of Group Lotus, Dany Bahar, after its investigation into his stewardship of the ailing British sports carmaker. Bahar is seeking GBP 6.7 million from Group Lotus for unlawful early termination of his employment as part of his claim. DRB-Hicom gained control of Group Lotus after it bought Proton Holdings in January and completed full acquisition of Proton in June, the same month when unprofitable Group Lotus sacked Bahar following a probe by DRB-Hicom, which complained of his conduct. The company, however, did not elaborate about the investigation or the reason for his dismissal. The impact of Proton's acquisition on DRB-Hicom's bottom line has been transient.
With the group looking to implement several initiatives to improve cost effectiveness, quality and delivery efficiency, its performance is expected to remain satisfactory for financial year ending March 31, 2013.
DRB-HICOM Berhad is a Malaysia-based investment holding company. The Company's segments include Automotive, Aerospace and Defence, Postal, Banking, Services, Properties, and Investments and Others. The Automotive segment is engaged in the manufacturing, assembling, vehicles importation, pre-delivery inspection, vehicles leasing, distribution and sale of motor vehicles, motorcycles including sale of related spares and services and vehicle inspection. The Aerospace and Defence segment is engaged in the composite manufacturing, sale of military vehicles and special purpose vehicles including sale of related spares and services. The Postal segment includes mail, courier and retail services. It is engaged in the Islamic banking and related financial services. The Services segment includes concession services, integrated logistics and inventory solutions, higher education and vocational training institution and others. It is engaged in the property concession, holding and development.
DRB-HICOM Berhad Reports Unaudited Consolidated Earnings Results for the First Quarter Ended June 30, 2012; Faces Lawsuit by Former Group Lotus Chief Dany Bahar; Provides Group Earnings Guidance for the Fiscal Year Ending March 31, 2013