Indonesia's largest diversified tire maker PT Gajah Tunggal Tbk (GJTL) reported a 10.84% drop in operating profit for the first quarter of this year on the back of cost of goods sales (COGS) increase.
The company posted Rp281.32 billion in 1Q 2011 from Rp315.53 billion, sending its operating margin to 9.72%, lowered from 13.63%. COGS increased 33.51% to Rp2.47 trillion from Rp1.85 trillion.
Gajah Tunggal's sales rose 25.11% to Rp2.89 trillion from Rp2.31 trillion. The company recorded Rp349.47 billion sales to tire maker Michelin North America, which was more than 10% of Gajah Tunggal's condolidated sales.
However, the company was still in a positive growth of net profit, mostly driven by higher foreign exchange gain.
Gajah Tunggal's net profit increased 21.79% to Rp338.18 billion or IDR95 per share from Rp277.66 billion or Rp71 per share.
Gajah Tunggal is 49.35% controlled by Denham Pte Ltd, Compagnie Financiere Michelin of 10% stake, Cooperatives of 0.12%, directors of 0.08%, and public shareholders of 40.45%.
Disclosure: No position at the stock mentioned above.
Print This Article