UT's coal sales volume soars, overall mining gross profit margin down
Tuesday, October 30 2012 - 11:54 AM WIB
IDX-listed heavy-equipment distributor and coal mining firm United Tractors Tbk (UT), the sole authorized distributor of Komatsu heavy equipment in Indonesia recently stated that on coal mining business, its coal sales volume, through PT Prima Multi Mineral (PMM) and PT Tuah Turangga Agung (TTA), jumps by 41 percent to 4.52 million tons from the previous volume of 3.21 million tons. As the result of higher coal sales volume, revenue of mining posted 28 percent hike to Rp 5.02 trillion from Rp 3.91 trillion.
UT's mining contracting business unit, through PT Pamapersada Nusantara (Pama) recorded 8 percent increase in coal production of 68.5 million tons as well as overburden removal of 634.0 million bcm, resulting in 26% growth of revenue at Rp 20.13 trillion from Rp 15.93 trillion in the same period last year. Higher volume as well as normal weather condition, and favorable currency exchange rate has supported Pama to record improved gross profit margin of 16.1%, up from 15.3% last year.
However, downward trend of coal sales price and increased fuel costs have negatively impacted mining business and reduced the gross profit margin to 6.4%.
On heavy equipment business, 15 percent sales volume drop year on year as of September 2012 to 5,455 units. Yet UT positively recorded 27 percent increased revenue from parts and heavy equipment maintenance sales. Combined, the revenue of construction machinery unit experienced a 5 percent decrease to Rp 18.99 trillion from Rp 19.91 trillion.
"Despite the weakening demand from mining sector, sales to construction and plantations sectors increased. Other products were also affected by the decrease in mining sector activities, such as UD Trucks which fell from 1,093 units to 392 units, and Scania trucks which dropped from 575 units to 329 units. However, in a tight competition, market share of Komatsu in Indonesia remains leading at 44%, based on internal market research," the company said in its third quarter investor bulletin.
"Overall, as of September 2012, through its three business units, UT recorded consolidated revenue growth of 11% totaling Rp 44.14 trillion, accompanied by operating income increase of 8% totaling to Rp 5.92 trillion, and net profit growth of 3% to Rp 4.47 trillion. To this total net revenue, the contribution from each Company?s business unit was 43.0% from Construction Machinery, 45.6% from Mining Contracting, and 11.4% from Mining," the company said.
Editing Er Audy Zandri