Timah Posts Rp948 Billion Profit in 2010 - The Indonesia Today

World's second largest tin producer PT Timah (TINS) Tbk booked net profit of Rp947.9 billion last year or Rp183.3 per share, skyrocketed 203% from 2009 due to substantially higher global tin price, especially in the second half of 2010.

Timah reported sales revenue of Rp8.339 trillion last year, increased only by 8.17%, thanks to higher tin prices, because its sales volume actually dropped significantly. Average tin price was US$19,869 in 2010, soared from US$13,558 per ton. Sales volume, meanwhile, dropped from 49,240 tons in 2009 to 40,413 tons last year.

The company’s gross profit in 2010 was Rp1,924.1 Billion or 67% higher than that of same period in 2009 which was Rp 1,153.0 Billion and cost of sales was 2% decreased compare to that of previous year.

The company’s income from operation increased by 90% from Rp 688.5 Billion in 2009 to Rp 1,310.8 Billion and profit before tax was 105% higher than that of 2009 of Rp549.2 Billion to Rp1,127.3 Billion in 2010.

Timah closed at Rp2,600 Wednesday (March 30). That price, reflected PE multiple 14 on 2010 earnings. Tin prices closed at US$31,350 per ton Tuesday (March 29) in London Metals Exchange.