UT reports lower Q1 net income on coal downturn

By Romel S. Gurky

IDX-listed heavy equipment company PT United Tractors Tbk (UT) said that net income in the first quarter of this year fell by 9 percent to Rp 12.65 trillion compared to the corresponding quarter of last year as sales of heavy equipment and mining contracting business slowed down due to the downturn in the coal mining sector.

The company said recently, however, that net income increased by 4percent to Rp 1.64 trillion, thanks to the appreciation of the US dollar against the rupiah.

The mining contracting business segment, run by subsidiary PT Pamapersada Nusantara, which accounted for more than 55 percent of consolidated net revenue, saw a 13 percent decline in net revenue Rp7.0 trillion year-on-year, as coal production volume down 9 percent to 25.3 million, with overburden removal fell 15 percent to 174.6 million bcm.

Heavy equipment segment, which accounted for more than 30.8 percent of consolidated revenue, recorded a decrease in Komatsu sales volume by 37 percent to 763 units from 1,211 units. On the other hand, revenue of spare parts and maintenance services rose by 8 percent to Rp1.52 trillion. Overall, the heavy equipment segment recorded revenue of Rp3.89 trillion or down 12 percent.

Meanwhile, its mining business segment recorded coal sales volume of 4 percent higher at 1.71 million tons and recorded a 2 percent increase in revenue to Rp1.44 trillion.

Editing by Reiner Simanjuntak