Financial Times

UML doubles Q1 profit despite high vehicle taxes
United Motors Lanka (UML), agents for Mitsubishi, has more than doubled its first quarter earnings this year over the corresponding period of last year despite high import duties and political uncertainty that dampened vehicle imports.

The company achieved a profit after tax of Rs. 55.3 million in the quarter ended June 30, 2005, up 124.6 percent over the first quarter of the last financial year, it said in a statement. The group earned a profit after tax of Rs. 68.2 million, an increase of 146.1 percent over last year’s result.

“Despite considerable pressure from the external environment in the wake of high import duties and taxes on vehicles and the prevailing political uncertainty, it is noteworthy that the company and its subsidiaries have achieved excellent results,” the statement said.

The company has been importing vehicles for over 60 years and its Mitsubishi range in Sri Lanka includes the sedans Lancer and Galant, the Montero, Montero Sport and Outlander sports utility vehicles, the L 200 double cab, L 300 van and mini bus, the new range of Canter and Fuso trucks and the Rosa bus.

It has a tie–up with TVS Motor Company of India to market TVS motor cycles in Sri Lanka which it said has met with “speedy success”. At the end of June 2005, group assets stood at Rs. 4.6 billion, a growth of 39.8 percent from June 2004 whilst the group Shareholder’s Funds have grown by 52.7 percent over the same period.

The Group Net Assets per Share increased to Rs. 48.40 by June 30, 2005 from Rs. 31.69 at the end of June 2004. The company paid a 25 percent dividend in the financial year 2004/05.

United Motors Group also provides financial services through Orient Financial Services & Corporation Ltd, its fully owned subsidiary set up two years ago, and which has contributed towards group profitability.

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