Gajah Tunggal reports good growth in Q1

ERJ staff report (DS)

Jakarta - First-quarter sales, operating profits and EBITDA all increased at Indonesian tyre maker Gajah Tunggal, but profits fell slightly

The company said sales in the three months to March 2012 increased to Rp 3146 billion (euro 259 million) from Rp 2896 billion a year earlier. Operating income also increased to Rp 393 billion from Rp 281 billion.

EBITDA rose to Rp 497 billion from Rp 380 billion in the period.

In a presentation ahead of its investor day on 3 May, the company said the car and motorcycle tyre industry in Indonesia is improving in quality. Gajah Tunggal is aiming to increase its integration in upstream materials and processes, and to focus on high and ultra-high performance products.

In terms of sales revenues in the quarter, around 36 percent came from radial tyres; 34 percent from cross-ply tyres and 22 percent from motorcycle tyres.

The company has capacity for 45,000 radial tyres per day, but used only 67 percent of that. It has capacity for 13,600 cross-ply tyres daily, and used 91 percent of that. It has capacity for 90,000 moto tyres daily, of which 66 percent was used in the quarter.

It also can make up to 72,000 tonnes of synthetic rubber annually and used 76 percent of that. In terms of tyre fabric it can make 36,000 tonnes annually, of which 74 percent was used in the quarter.

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Investor presentation from Gajah Tunggal (Indonesian language)