United Motors records best Ist quarter results

United Motors claimed to have achieved its best ever first quarter results. In the three months ended June 30, 2006 the company recorded a turnover of Rs. 877.7 million, an increase of 75.7 % over the turnover of the corresponding period of last year.

Profit After Tax of Rs. 91.9 million also reflected an improvement of 66.2 % over the profit in the same period last year.

The consolidated results improved further over last year. Whilst Group Turnover increased by over 50%, Group Profit After Tax and Minority Interest was Rs. 110.2 million compared to Rs. 68. 2 million achieved in the first quarter of last year, an increase of 61.5 %. Earnings per Share of the Group improved by 65.9 % over last year.

A dividend of 20% was paid to shareholders in July 2006. The company also issued Bonus Shares of one for every seven shares held. This resulted in an increase of 14.3 % of the shares held by each shareholder prior to this date.

The parent company United Motors Lanka Ltd (UMLL) contributed 83% towards the Group profitability. UMLL, the sole distributor for Brand New Mitsubishi vehicles has maintained consistent growth in passenger vehicles and has also shown a significant increase in market share in the truck market.

Last year the Mitsubishi Fuso Canter Trucks captured 55% of the market and this trend continued during the first six months of this year.

Another product under the UMLL umbrella is the world renowned brand Valvoline. Valvoline is the only brand in Sri Lanka that offers a "Family of Brands" which include Valvoline lubricants - Synthetic and Mineral, Eagle One appearance products, Synpower and Pyroll Chemicals. The distribution of these products has expanded showing marked increase in sales.