UT generated Rp 18.08 T net revenue for H1 2010

(July 29, 2010)--PT United Tractors Tbk today announced that the Company?s performance during the first semester 2010 recorded 30% increase in the Company?s consolidated revenue, from Rp 13.58 trillion in the first half of 2009 to Rp 18.08 trillion. The increase in net revenues was contributed by the heavy equipment distribution business unit that recorded an increase in heavy equipment sales and contributed 47% to the Company?s consolidated revenues, and increased production of coal and overburden generated by the subsidiary in mining contracting, PT Pamapersada Nusantara (?Pama?) which contributed 45%, whereas the remaining 8% came from the mining business unit which is run by DEJ mines (Dasa Eka Jasatama) and PT Tuah Turangga Agung.

Despite the growth of revenue, the Company endured slight unfavorable impact of the strengthened Rupiah, as well as swelled production costs in mining contracting business, due to unusually heavy rainfall during the second quarter. As the result, the Company only booked 4% increase in gross profit, from Rp 3.22 trillion to Rp 3.34 trillion. Combined with some additional other expenses, the resulted net income was slightly increased, from Rp 1.87 trillion to Rp 1.89 trillion.

The increase in commodity prices of coal, palm oil and pulp, as well as better funding liquidity and attractive interest rates, has driven demand for heavy equipment across all sectors. Until June 2010, Komatsu sales volume reached 2,732 units or up 95% compared the same period last year. Komatsu still succeeds to lead the domestic market with 46% market share (based on internal market research). Out of the total Komatsu sales volume, the largest portion of sales went to mining sector, namely by 59%, followed by plantation which contributed 21%, then construction and forestry sectors each by 10%. Furthermore, revenue from spare parts sales and maintenance services showed a growth of 16% compared to the same period last year.

On the mining contracting business, although shadowed by the unfavorable weather conditions in the second quarter, all efforts and experience helped Pama to achieve 24% increase in coal production and 16% in overburden removal or from 30.3 million tons of coal and 272.4 million bcm overburden removal to 37.7 million tons and 314.7 million bcm. On coal mining business, the Company recorded an increase in coal sales volume from 1.17 million tons to 1.28 million tons.

On 1 July 2010, the Company has distributed the final dividend for the book year 2009, in total amount of Rp 1.10 trillion, or Rp 330 per share, while the interim dividend has been distributed on 11 November 2009 amounting to Rp 130 per share. (end of release)