Indonesia’s PT Gajah Tunggal Tbk is expected to report its fiscal year 2010 results on Mar. 26.
Pre-empting the full release of the company’s financials, DB Equity Research Automotive reports the tiremaker achieved annual sales of Rp 9.9 trillion, a 24% year-on-year increase. This figure is, the Deutsche Bank analysts comment, 3% above consensus and 5% above Deutsche Bank estimates.
Gross profit is reported to have increased 6% year-on-year above 2009’s Rp 1.821 trillion, implying a full-year gross margin of 17.9%. This margin is, DB Equity Research Automotive notes, “much better than expected” given the steep (around 16%) average increase in natural rubber prices in the fourth quarter of 2010 versus the average in the first nine months of the year.
Operating profit is said to have increased 12% year-on-year from its 2009 level of Rp 1.144 trillion, giving an operating margin of 13.1%. Net profit, which rocketed up to Rp 905.33 billion in 2009, is reported to have declined 8% year-on-year in 2010, mainly due to FX gain effects. Net profit is 19% above the bank’s own estimate but 4% below consensus. DB adds that, excluding FX gains, net profit rose 34% year-on-year. (Tyres & Accessories)
