Malaysias UMW sees growth in car sales
By Saeed Azhar
KUALA LUMPUR (Reuters) - Malaysian autos-to-energy group UMW hopes to sell more cars after this year after launching new Toyota models and sees strong growth in its oil-services business but profit growth is set to slow to 10-15 percent from more than 50 percent in 2007.
UMW Holdings (UMWS.KL: Quote, Profile, Research) Chief Executive Abdul Halim Harun told Reuters in an interview on Monday he expects 2008 car sales to rise 6-7 percent amid strong demand for small cars, but was cautious about the middle class and luxury car segments.
His full-year net profit forecast is well below last year’s 51.5 percent profit jump, but beats an average analysts projection by Reuters Estimates for 9 percent growth.
“As far as the car sales is concerned, I don’t see a slowdown,” he said. “We’d like to see that growth contributed by the new models.”
The forecast is above an industry projection of 4.7 percent growth in motor vehicle sales on continued growth in the Malaysian economy, which is officially projected to expand at a 6-6.5 percent pace in 2008 on the back of strong domestic demand.
UMW, which traces its roots to Singapore when it was established as a family business in 1917, had to undergo a revamp in the 1980s after facing financial difficulties.
Malaysian state fund Permodalan Nasional Asset Management controls 36 percent of UMW and the state Employees Provident Fund holds 14.75 percent, Reuters data shows.
Halim, a chartered accountant and soccer and bowling fan, joined in 2001 and put the focus on four core businesses — auto, oil servicing, heavy equipment and manufacturing — instead of nine. Continued…
Tags: Auto, Car Sales, cars, economy, gm, launch, new model, reuters, Toyota
