United Tractors 1H12 Earnings

United Tractors’ (UNTR) 2Q12 revenue grew 19.48% y-o-y or 3.70% q-o-q. Net profits rose 21.35% y-o-y or 1.99% q-o-q to IDR3.09trn, accounting for 49.60% of our FY12 forecast and largely in line with our expectation.

The bottom-line growth was mainly contributed by Construction Machinery segment (70.57% gross profits growth y-o-y, despite a slow 0.09% q-o-q). Komatsu recorded sales volume at 4,231 units during 1H12, down by 102 units or 2.35% from 1H11. This drop was again caused by a significant decline for sales to the Mining sector (-13.32% y-o-y). Sales to Forestry clients declined 9.06% y-o-y. Meanwhile, sales to the Agro and Construction sectors posted a healthy 22.32% and 31.91% y-o-y growth respectively.

Mining Contracting segment grew 2.99% y-o-y and 33.30% q-o-q in 2Q12, helped by UNTR’s contract commitments with its mining clients. Pama recorded 45.1m coal production and 415.2m bcm overburden removal in 1H12, up 12.19% and 13.32% y-o-y respectively from 1H11 close.

On the back of lacklustre global coal prices, gross profits growth from the Mining segment declined by 15.04% y-o-y and 51.18% q-o-q. This result was posted despite considerable production increases at Prima Multi Mineral (PMM) and Tuah Turangga Agung (PMM) mines. 1H12 coal production for both subsidiaries reached 3,046,000 tons – up 38.14% y-o-y.