Indonesia's largest tire maker PT Gajah Tunggal Tbk (GJTL) increased net sales in 2010 to IDR9.85 trillion, up 24.2% from IDR7.94 trillion in 2009.
Sales volumes in all business segment rose significantly as the domestic market experienced strong growth and the export market normalized after the global automotive crisis.
In a press statement obtained by Insider Stories today, the launch of new products, such as the Champiro Eco, an Euro 2012 Eco Compliant tire, and Savero Komodo Extreme for Off Road travel and sports, proved to be very well received by the markets.
Gross profit inched up 12.4% to IDR1.94 trillion even as the 2010 gross margin at 19.7% was slightly lower than 23% in 2009, but still strong on a historical basis. Margins came under pressure in 4Q10 as natural rubber and other raw materials increased in pricing.
On the operating level, EBITDA reached US$181 million from US$142 million in the previous year as the expansion programs in the radial and motorcycle tire segments start to commence commercial production.
Net income decreased slightly to IDR831 billion from IDR905 billion in 2009, due to a lower gain of a IDR487 billion in foreign exchange related to our US$ denominated bonds over the previous year.
Disclosure: No position at the stock mentioned above.
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