Thursday, February 26, 2015

PT United Tractors Tbk (“UT”) today reported the Company’s performance in 2014 that showed an increased in comparison to 2013.

The Company’s consolidated net revenue in 2014 recorded an increase by 4% to Rp53.14 trillion from Rp51.01 trillion in 2013. The favorable exchange rate serves as one major factor that generates positive impact, thus increasing the Company’s gross profit by 27%, while the Company’s net income increased 11% to Rp5.37 trillion from Rp4.83 trillion.

The continuing decrease of the coal price led the Company to assess its mining properties value and determine provision of impairment of this mining property. The provision charge to profit after tax attributable to owners of the parent was amounted to Rp1.54 trillion.

Construction Machinery Segment

Construction Machinery segment recorded a decrease in Komatsu sales volume by 16% to 3,513 units from 4,203 units. The decrease was still mainly impacted by the slowing down in mining and plantation sectors. On the other hand, revenue of spare parts and maintenance services increased by 8% to Rp5.98 trillion. The strengtening US Dollar added with the increase in revenue from after sales service made the total net revenue from Construction Machinery segment was only down 4% to Rp14.98 trillion.

The mining sector absorbed 35% out of the total Komatsu sales volume, followed by construction sector which absorbed 28%, the plantation sector by 23%, and the remaining 14% by forestry sector. Throughout 2014, Komatsu managed to maintain its position as market leader in the local heavy equipment market by recording 40% market share (source: internal market research). The lower activity in mining sector also caused a decrease in sales of UD Trucks from 365 units to 171 units, and Scania trucks from of 445 units to 365 units.

Mining Contracting Segment

PT Pamapersada Nusantara (Pama), the Company’s subsidiary in Mining Contracting recorded a 6% increase in net revenue amounted to Rp33.49 trillion, compared to Rp31.55 trillion in 2013. This performance was made possible by increased coal production volume and hauling from 105.1 million tons to 119.4 million tons, despite a decreased of overburden removal, which was 806.4 million bcm from 844.9 million bcm.

Mining Segment

The Company’s Mining business segment was operated by PT Prima Multi Mineral, PT Tuah Turangga Agung, as well as two new mining concessions, PT Asmin Bara Bronang and PT Duta Nurcahya. From these four mining concessions, coal sales volume reached 5.94 million tons, or rose by 42%. In line with higher coal sales volume, Mining business segment recorded a 22% increase in revenue to Rp4.67 trillion. However, a decrease in the average selling price of coal has reduced its profitability rate.

On 5 January 2015, UT through its subsidiary, PT Karya Supra Perkasa has acquired 40% shares in PT Acset Indonusa Tbk (“ACST”) from two majority shareholder of ACST, namely PT Cross Plus Indonesia and PT Loka Cipta Kreasi. ACST is a public company in the field of construction services and listed on the IDX with the trading code ACST.