UT enjoys strong sales amid robust mining sector
UT enjoys strong sales amid robust mining sector
Rendi A. Witular, Jakarta
Publicly listed heavy equipment supplier PT United Tractor
(UT) said consolidated sales revenue rose by around 21 percent in
the first semester of this year, primarily due to higher demand
for heavy equipment from mining firms.
UT corporate secretary Tjandrawati Waas said the company
recorded sales of around Rp 4 trillion (US$444 million) in the
first semester, ending in June, up from Rp 3.3 trillion in the
same period last year.
"Demand from natural resources-based firms for heavy equipment
is soaring as they are expanding output amid rising prices for
almost all commodities. This has encouraged them to buy more
vehicles and other heavy plant to boost their output," said
Tjandrawati before a seminar at the Jakarta Stock Exchange on
Thursday.
He said that sales of Komatsu brand heavy equipment rose by
around 62 percent to 650 units in the first half of this year
from around 400 units in the same period last year.
According to Tjandrawati, the company had to revise upward for
the second time its sales target for Komatsu equipment this year
to 1,450 units, from initial targets of 930 and 1,125 units, due
to the unexpectedly high demand.
Last year, the company sold 916 items of plant.
"Most of it was supplied to mining companies ... We expect
next year sales will be even higher as the country's political
and economic situation are expected to improve after the general
election," said Tjandrawati.
A UT subsidiary, PT Pamapersada Nusantara, won a $1 billion
contract from coal producer PT Kaltim Prima Coal in April to mine
coal in East Kalimantan for more than 10 years. Pamapersada will
buy mining equipment from UT.
Pamapersada currently holds similar exploration contracts with
PT Adaro Indonesia -- the country's largest coal producer --
state-owned PT Tambang Batubara Bukit Asam, PT Indominco Mandiri,
PT Multi Harapan Utama and PT Kideco Jaya Agung.
The company produced 27.7 million tons of coal under contract
last year.
UT is 54 percent-controlled by the country's largest
automotive assembler and distributor, PT Astra International.
Shares in the company rose by Rp 50 to Rp 1,225 on the Jakarta
Stock Exchange on Thursday.