United Tractors eyes 10 percent increase in mining contracts next year

PT United Tractors Tbk, a supplier of heavy equipment and mining contractor, expects a 10 percent increase in both heavy equipment sales and new mining contracts next year, the company?s senior executive has said.

The company?s finance director Gidion Hasan said in Jakarta on Thursday that the company had a target to secure contracts for the production of 77 million tons of coal and for overburden removal of about 655 million bank cubic meters next year.

As of October, the company had secured contracts to produce 64 million tons of coal and to remove 541.2 million of overburden.

United Tractors also expected sales volume of its two coal subsidiaries, Dasa Eka Jasatama and Tuah Turangga Agung, to reach 4.5 million tons this year. Until November this year, coal sales by Dasa Eka and Tuah Turangga reached 2.5 million tons and about 477,000 tons respectively.

Gidion also said that the company expected a profit margin of between 15 percent and 16 percent from coal mining contracts on the assumption that the weather is normal.

He also said the company expected an increase of 10 percent in heavy equipment sales next year from this year?s target of 5,200 units. During the period between January to October, sales reached 4,671 units. (*)