EPMB profit surges on higher car sales

KUALA LUMPUR: Automotive systems and components manufacturer, EP Manufacturing Bhd, posted a net profit of RM4.1mil or a 300% increase for the first quarter ended March 31, 2010.

It was a significant improvement compared to the RM1mil recorded in the previous year’s corresponding period.
Hamidon Abdullah ... ‘We are upbeat over prospects in the coming quarters.’

Group revenue rose by 45% to RM150.2mil in the first quarter 2010 from RM103.5mil recorded for the same quarter previously.

“Our first quarter result is a testament of our continuous commitment to expand production and increase technology know how to meet client needs,” executive chairman Hamidon Abdullah said in a statement yesterday.

The improvement in revenue and net profit is attributable to higher car sales recorded in the first quarter of 2010, in tandem with the economic recovery as well as an improvement in consumer sentiment.

National automakers Proton and Perodua remain EPMB’s two major customers and the Group’s main revenue contributors.

“The high bookings received by the recently launched Perodua Alza also augurs well for us. With the improving market sentiment and availability of credit, we are upbeat over prospects in the coming quarters,” Hamidon said.

In 2009, the company invested more than RM50mil to upgrade facilities catering to the Perodua Myvi and Alza localisation projects, which it had successfully secured.

The projects would impact EPMB’s earnings positively in 2010, Hamidon said. — Bernama