DRB-Hicom in the black for third quarter

SHAH ALAM: DRB-Hicom Bhd saw a net profit of RM352.99 million for the third quarter ended Dec 31, 2016 compared with a net loss of RM186.18 million a year ago, mainly attributable to the gain on disposal of a subsidiary company (Corwin Holding Ptd Ltd) and improved performance of companies in the automotive and services sectors.
Its revenue rose 2.9% to RM3.43 billion from RM3.34 billion in the previous year’s corresponding quarter, mainly due to the first time recognition of revenue contributed by Pos Malaysia, as a subsidiary company.
For the nine months period, its net loss narrowed to RM125.95 million from a net loss of RM202.00 million a year ago, due to a gain on disposal of a subsidiary company, Corwin Holding, a one-off exceptional loss on re-measurement of previously held equity interest in Pos Malaysia and foreign exchange losses arising from the re-translation of certain payables and bank borrowings denominated in foreign currencies.
Its revenue fell 10% to RM8.58 billion compared with RM9.54 billion in the previous year’s corresponding period.
DRB-Hicom’s search for a foreign strategic partner (FSP) for Proton is expected to be concluded by first half of 2017. The eventual FSP is expected to enable Proton to have access to better and newer technologies apart from enlarging its footprint beyond local shores.