KUALA LUMPUR (May 18): Hume Industries Bhd, a member of Hong Leong Group, is back in the black in its third quarter, as it records higher revenue from lower rebates on cement selling prices.

It recorded a net profit of RM1.81 million for the three months ended March 31, 2020 (3QFY2020), compared with a net loss of RM24.19 million in the corresponding quarter a year prior, with revenue up 16.63% at RM177.37 million from RM152.08 million.

Earnings per share came in at 0.37 sen for the quarter, versus a loss per share of 5.05 sen previously, its stock exchange filing today showed.

The stronger quarterly results helped the group narrow its net loss to RM29.51 million for the nine months ended March 31, from RM70.27 million a year ago. Revenue for the cumulative period was 6.4% higher at RM505.78 million, versus RM475.38 million previously.

Hence, its 9MFY20 loss per share came down to 5.98 sen, from 14.97 sen previously.

Going forward, the group expects the unprecedented situation caused by the Covid-19 outbreak to have an adverse impact on its business.

While it had been granted permission by the government to partially resume operations in May, following the suspension of nationwide activities under the movement control order imposed from March 18, it is currently assessing market conditions to gradually step up production.

"As such, the board has decided to suspend all views on the prospects of the group until such time that the overall impact of the Covid-19 pandemic on the group becomes clearer," it said.
 
"In the meantime, the management's focus is to conserve cash within the business. All senior managers have agreed to a voluntary reduction in base salary and devised ways to adapt to the new norms in business practices," it added.

Shares of Hume Industries finished 4.20% or five sen higher at RM1.24 today, giving it a market capitalisation of RM616.46 million. The counter saw 517,900 shares traded.