Thursday, July 30, 2015

PT United Tractors Tbk (“UT”) today reported the Company’s operational performance for the first half 2015 that showed a decrease, while financial performance was slightly increased.

The Company’s consolidated net revenue as of June 2015 recorded a decrease by 9% to Rp24.95 trillion compared to Rp27.53 trillion in the first half 2014. However, the favourable US Dollar exchange rate had helped to slightly improve the Company’s net profit, which was recorded at Rp3.41 trillion, a 4% increase compared to the corresponding period last year.

Construction Machinery Segment

Construction Machinery segment recorded a decrease in Komatsu sales volume by 38% to 1,375 units from 2,207 units. The decrease remains due to the ongoing subdued market conditions and the delayed realization of most infrastructure projects. On the other hand, the amount of spare parts sales and heavy equipment maintenance services increased by 8% to Rp3.10 trillion, due to the need to maintain the life cycle of heavy equipment. Overall, total revenue of Construction Machinery business segment during first half 2015 recorded a decrease to Rp7.29 trillion or down 14%.

As of June 2015, the Construction sector contributed 33% of total Komatsu heavy equipment sales volume, followed by mining sector which contributed 32%, the forestry sector by 21%, and the remaining 14% by plantation sector. Komatsu was able to maintain its market leader position in heavy equipment sector with the domestic market share of 38% (source: internal market research). Due to the sluggish mining activities, sales volume of other products were also dropped. UD Trucks fell from 94 units to 53 units, while Scania products declined from 242 units to 188 units.

Mining Contracting Segment

PT Pamapersada Nusantara (Pama), the Company’s subsidiary in Mining Contracting recorded a 9% decrease in net revenue amounted to Rp14.74 trillion from Rp16.20 trillion on the corresponding period in 2014. This result was due to decreased coal production volume from 56.4 million tons to 51.6 million tons mainly due to higher rainfall during first quarter 2015, with overburden removal down 8% to 372.3 million bcm from 403.9 million bcm.

Mining Segment

The Company’s Mining business segment was operated by PT Tuah Turangga Agung. Mining business segment recorded 18% lower coal sales volume at 2.81 million tons. This has caused a decrease in revenue  by 18%, from Rp2.89 trillion to Rp2.37 trillion.

On 11 May 2015, UT through its subsidiary, PT Karya Supra Perkasa (KSP) acquired an additional 10.1% shares in PT Acset Indonusa Tbk (ACST) from  PT Loka Cipta Kreasi and PT Cross Plus Indonesia, therefore possessing 50.1% share ownership of ACST. ACST is a public company in the field of construction services and listed on the IDX with the trading code ACST.