UT net profit down 9%
Friday, February 28 2014 - 12:16 AM WIB
IDX-listed heavy equipment company PT United Tractors Tbk (UT) said that consolidated revenue in 2013 declined by 9 percent to Rp 51.10 trillion from Rp 55.95 trillion in the previous year due primarily to falling demand for equipment in the mining and plantation sectors.
Net profit fell by 16 percent to Rp 4.83 trillion from Rp 5.78 trillion, the company said in a statement issued Thursday.
Net revenue for its Construction Machinery business segment decreased by 29 percent to Rp 15.64 trillion and contributed 31 percent to the total consolidated revenue. Reduced demand for heavy equipment, particularly in mining and plantation sectors as the result of decreased activity in those sectors, drove a negative impact on Komatsu heavy equipment brand sales volume during the year 2013, which fell by 32 percent, from 6,202 units in 2012 to 4,203 units.
Out of the total Komatsu sales volume, as much as 43 percent went to mining sector, 26 percent to construction sector, 23 percent to plantation sector, and the remaining 8 percent to the forestry sector. In the midst of tight competition, Komatsu maintained its position as market leader with a market share of 41 percent (source: internal market research).
In line with weaker demand for heavy equipment, revenue of spare parts and maintenance services was down to Rp 5.52 trillion, a fall of 6 percent. Sales of other products, such as UD Trucks were decreased from 414 units to 365 units, while sales volume of Scania trucks were increased from 363 units to 445 units.
Meanwhile, PT Pamapersada Nusantara (Pama), the company?s subsidiary in Mining Contracting recorded a 13 percent increase in net revenue amounted to Rp 31.55 trillion and contributed 62 percent to the total consolidated revenue, with an increased coal production volume from 94.4 million tons to 105.1 million tons while overburden removal was down from 855.5 million bcm to 844.9 million bcm.
The company?s Mining business segment was operated by PT Prima Multi Mineral, PT Tuah Turangga Agung, as well as several new mining concessions such as PT Asmin Bara Bronang, and PT Duta Nurcahya that have started commercial production since fourth quarter 2013. From these four mining concessions, coal sales volume reached 4.18 million tons, down by 26 percent from a volume of 5.63 million tons. Due to lower average selling price of coal, Mining business segment recorded a drop in revenue by 34% to Rp 3.81 trillion and accounted for 7 percent of total consolidated revenue.
Editing by Reiner Simanjuntak