Gajah Tunggal releases corporate profile

ERJ staff report (DS)

Jakarta, Indonesia -- In a public document issued through the Jakarta Stock Exchange, PT Gajah Tunggal Tbk (“GT”) has outlined its strategy going forward. The document is published in the Indonesian language.

GT said its strategy is built around five key policies and assumptions

• The vehicle and tyre market in Indionesia is becoming more sophisticated
• GT will aim to integrate upstream processes to reduce productin costs
• GT will focus on special tyres and UHP tyres
• The off-take cooperation with Michelin will continue
• GT will strengthen its brand position in domestic and foreign markets

GT said its sales have increased at an annualised 12.6 percent in the period from 2005 - 2010. GT said that in the first half of 2011 it has capacity for 43 000 radial car tyres/day; 81 000 motocycle tyres/day and 13,600 cross-ply car tyres per day. In addition the company has capacity for 36 000 tonne/year of synthetic rubber.

Capacity utilisation in the first half of 2011 was 78 percent in radial car tyres; 84 percent in cross-ply car tyres; 70 percent in moto tyres; and 83 percent in both the two raw material units.

In terms of cost GT says 80 percent of its costs are based in raw materials in the first half of 2011, up from 76 percent in the same period of 2010. Within the raw materials segment, natural rubber consumes 45 percent of the budget, up from 35 percent a year ago. Synthetic rubber remained at 21 percent.

The company said it reported sales of Rp 5817 billion (euro 483 million) in the period, up from Rp 4813 billion a year earlier. Operating profit fell to Rp 441 billion (euro 36.6 million) from Rp668 billion a year earlier, while pre-tax (EBITDA) profit fell to Rp 640 billion (euro 53.1 million) from Rp 852 billion

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Presentation from PT Gajah Tunggal Tbk (Indonesian language)