United Tractors 1H net profit soars 34.6% - Insider Stories

PT United Tractors Tbk (UNTR) booked a 34.6% increase in net profit to Rp2.54 trillion for the first 6 months of this year from Rp1.89 trillion a year earlier.
The increase was a result of increased of commodity price and heavy equipment sales. United Tractors posted Rp25.62 trillion net revenue in 1H 2011, a 42% increase from Rp18.08 trillion in 1H 2010.

The increase in net revenue was contributed by the heavy equipment distribution business unit that contributed 51.0% to UNTR's consolidated revenue, PT Pamapersada Nusantara, the company’s subsidiary in mining contracting which contributed 38.3%.
The remaining of 10.6% came from the mining business unit which is run by PT Prima Multi Mineral (PPM/formerly called DEJ mines) and PT Tuah Turangga Agung.

The significant growth of net revenue was accompanied by growth of consolidated gross profit that grew 33% to reach Rp4.44 trillion from Rp3.34 trillion.
The favorable economic condition and increased commodity price have driven the market of heavy equipment to continue growing.

Operational performance
Until June 2011, Komatsu sales volume reached 4,333 units or up 59% compared the same period last year. Komatsu still succeeds to lead the domestic market with 51% 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 68%, followed by plantation which contributed 16%, then construction and forestry sectors by 10% and 6%, respectively.
Furthermore, revenue from spare parts sales and maintenance services showed a growth of 14% to Rp2.36 trillion from Rp2.07 trillion.

On the mining contracting business, better weather conditions allowed Pama to achieve 6% increase in coal production and 16% in overburden removal or from 37.7 million tons of coal and 314.7 million bcm overburden removal to 39.9 million tons and 364.9 million bcm.

On coal mining business, United Tractors recorded an increase in coal sales volume from 1.28 million tons to 2.20 million tons.
On 13 June 2011, the company has distributed the final dividend for the book year 2010, in total amount of Rp1.0 trillion, or Rp270 per share, while the interim dividend has been distributed on 12 November 2010 amounting to Rp160 per share.