BUILDING materials producer Hume Industries Bhd swung to a net profit of RM1.81 mil for the third quarter (3Q) ended March 31, 2020, from a loss of RM24.19 mil a year earlier.
The improvement was mainly due to the cement business contribution, thanks to lower rebate of cement selling price, said the company in its quarterly results announcement.
Revenue also increased to RM177.37 mil from RM152.08 mil the year-ago period, it said.
“The Movement Control Order (MCO) imposed by the Malaysian government as a result of controlling the spread of the Covid-19 virus on March 18, 2020, impacted the group’s businesses for the quarter under review as a full suspension of operations was imposed nationwide,” Hume said.
On its prospects, it said the board expected the unprecedented situations caused by the Covid-19 pandemic to have an adverse impact on the group’s businesses.
In early May, the group was granted permission by the International Trade and Industry Ministry to resume partial operations.
“The management is currently assessing the market situation to gradually step up productions. As such the board has decided to suspend all views on the prospects of the group’s until such time that the overall impact of the Covid-19 pandemic on the group becomes cleaner.
“In the meantime, the management’s focus is to conserve cash within the businesses. All senior managers have agreed to a voluntary reduction in base salary and devised ways to adapt to the new norm in business practices,” it said.
Hume’s board did not recommend any dividend for the quarter under review, and no dividend has been declared for the financial year to-date. – May 19, 2020, Bernama
