Thursday, July 28, 2016

PT United Tractors Tbk (“the Company”) today announced its consolidated financial statements for the the first half of 2016. In the report, the Company recorded consolidated net revenue decreased by 10% to Rp22.6 trillion compared to Rp24.9 trillion in the same period in 2015. Declining sales and profit margin, added with foreign exchange loss, resulted in lower Company’s net profit which was recorded at Rp1.9 trillion, down 46% from Rp3.4 trillion.

Construction Machinery Segment

Construction Machinery segment until June 2016 recorded a drop in Komatsu sales volume by 25% to 1,036 units from 1,375 units in the same period in 2015. The decrease in sales of heavy equipment occured in all sectors, except in construction sector which continued to show an increase. However, Komatsu is still ranked as market leader in heavy equipment with 34% domestic market share (according to internal market research). In line with decreasing sales of heavy equipment, the revenue of spare parts and maintenance services decreased by 10% to Rp2.8 trillion. Overall, total revenue of Construction Machinery segment recorded a decrease to Rp6.9 trillion or down 6%.

Mining Contracting Segment

The Company operates its Mining Contracting segment through PT Pamapersada Nusantara (“PAMA”) which recorded a 22% decrease in net revenue of Rp11.6 trillion during the first half of 2016 compared to Rp14.7 trillion in the same period 2015. PAMA also recorded a decrease in coal production volume by 4% from 52.0 million tons to 49.8 million tons, while overburden removal was down 9% from 373.7 million bcm to 339.2 million bcm.

Mining Segment

The Company’s Mining segment was operated by PT Tuah Turangga Agung. Total coal sales volume during first half of 2016 increased by 58% to 4.5 million tons, compared to 2.8 million tons in the same period in 2015. This has caused an increase in revenue of Mining business by 35% to Rp3.2 trillion from Rp2.4 trillion.

Construction Industry Segment

The Construction Industry segment was represented by PT Acset Indonusa Tbk (“ACST. In the first half of 2016, ACST booked net revenue of Rp944 billion and net profit of Rp33 billion. As of June 2016, ACST succeeded in acquiring new contracts amounting to Rp2.4 trillion. To support the growth of this business, ACST has raised capital of Rp600 billion, through rights issue in June 2016. The proceeds will be used for working capital and capital expenditures.