Indonesia's third largest tire maker PT Multistrada Arah Sarana Tbk (MASA) was still able to post a 20.03% increase in net profit for the first quarter of this year as higher net sales.
Its peer, PT Goodyear Indonesia Tbk (GDYR) suffered a 43.29% drop in net profit as cost of goods revenue increased 30.34%.
Multistrada, the maker of radial tire brands Achilles, Corsa, and Strada, booked Rp65.99 billion net profit or Rp10.8 per share in 1Q 2011 from Rp54.98 billion or Rp9 per share in 1Q 2010.
The profit increase was underpinned by foreign exchange gain which increased 67.73% to Rp19.86 billion from Rp11.84 billion.
Multistrada, which is now 10% owned by auto distributor and assembler controlled by Salim Group, PT Indomobil Sukses Internasional Tbk (IMAS), posted Rp79.27 billion operating profit, reflecting a 13.13% increase from Rp70.07 billion.
However, Multistrada's operating margin slightly decreased to 12.06% from 13.45%. Net sales rose 26.18% to Rp657.07 billion from Rp520.74 billion.
In contrast, Goodyear's net profit declined 43.29% to US$1.31 million or US$0.03 per share from US$2.31 million or US$0.06 per share.
Operating profit fell 41.03% to US$1.94 million from US$3.29 million on the back of a 30.34% increase in cost of goods sales of 30.34% to US$51.38 million from US$39.42 million. Goodyear posted a 24.09% increase in net sales to US$55.83 million from US$44.99 million.
Disclosure: No position at the stock mentioned above.
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