Feb 24, 2011

United Tractors FY10 net income up 1.3%

Indonesian leading heavy equipment distributor and largest coal mining contractor PT United Tractors Tbk (UNTR) today reported a slight increase in net income last year.
However, United Tractors' operating profit slightly decreased 2.09% to Rp5.16 trillion last year from Rp5.27 trillion a year earlier, sending its operating marging lowered to 13.8% from 18%.
In a press statement obtained by Insider Stories, UNTR's net income slightly increased 1.31% to Rp3.87 trillion from Rp3.82 trillion. Gross profit climbed 1.95% to Rp6.80 trillion from Rp6.67 trillion. Revenue last year rose 27.6% to Rp37.32 trillion from Rp29.24 trillion.
The increase in net revenue was achieved due to sharp increase in heavy equipment sales contributed by construction machinery business unit that contributed 46.3% to UNTR's consolidated revenue, and increased production of coal generated by the subsidiary in mining contracting, PT Pamapersada Nusantara (Pama) which contributed 45.4%.
The remaining 8.3% came from the mining business unit which is run by DEJ mines (Dasa Eka Jasatama) and PT Tuah Turangga Agung. 
Operational performance
United Tractors enabled to jack up sales volume of Komatsu heavy equipment 74% to 5,404 units last year from 3,111 units in the previous year.
UNTR Corporate Secretary Sara Loebis said the company targets to increase 10% of its heavy equipment sales this year to 5,944.4 units.
The company maintained its position as market leader in heavy equipment with 46% market share (based on internal market research) last year.
Out of the total Komatsu sales volume, the largest portion of sales went to mining sector, namely by 61%, followed by plantation which contributed 19%, then construction and forestry sectors, respectively at 11% and 9%.
Furthermore, revenue from spare parts sales and maintenance services showed a growth of 14% compared to the same period last year.
In the coal contrating business, Pamapersada reached a 15% increase in coal production to 77.9 million tons from 68 million tons.
Overburden removal enlarged 9% to 651.5 million bank cubic meter (bcm) from 597.9 million bcm. According to Sara, Pamapersada is eyeing 8% and 12% rise in both coal production and overburden removal to 84.13 million tons and 729.68 million bcm in 2011.
In the coal mining, United Tractors last year sold 3.05 million tons from 2.40 million tons. This year, coal sales is expected to increase to 4 million tons.

Disclosure: No position at the stock mentioned above.

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