Hong Leong Asia bears brunt of $33m loss in Q2

But its digital engine unit fared well as its revenue rose 5.3% to $43.6m.

Hong Leong Asia succumbed to a widened loss of $33m in Q2 2018 from a loss of $17.97m in Q2 2017, an announcement revealed. This was despite a revenue increase of 6.3% YoY to $997.7m in the second quarter.

For H1 2018, the firm saw a loss of $38.4m which is higher compared to the $27.8m loss in H1 2017. Revenue for H1 2018 inched up 1.9% YoY to $2.02b from $1.98b.

The firm attributed revenue increase mainly due to revenue growth recorded by digital engine unit Yuchai and building materials unit BMU. According to the firm, Yuchai’s revenue rose 5.3% YoY to $43.6 m.

“The increase in engine sales was mainly due to the increase in sales to the truck and off-road segments, particularly the agriculture application, and was partially offset by the decrease in the bus segment,” the firm explained.

According to Hong Leong, Yuchai’s sales was uplifted from the growth in the truck segment. However, the growth was offset by the drop in the bus segment amidst competition from full electric bus.