Gajah Tunggal FY2010 Net Sales Surpasses USD 1 Billion Mark

PT Gajah Tunggal Tbk increased net sales in 2010 to 9,854 billion, up 24.2% from Rp 7,936 in 2009. Sales volumes in all business segment rose significantly as the domestic market experienced strong growth and the export market normalized after the global automotive crisis. The launch of new products, such as the Champiro Eco, an Euro 2012 Eco Compliant tire, and Savero Komodo Extreme for Off Road travel and sports, proved to be very well received by the markets.

Gross profit increased 12.4% to Rp 1,939 billion even as the 2010 gross margin at 19.7% was slightly lower than 23% in 2009, but still strong on a historical basis. Margins came under pressure in 4Q10 as natural rubber and other raw materials increased in pricing.

On the operating level, EBITDA reached USD 181 million from USD 142 million in the previous year as the expansion programs in the radial and motorcycle tire segments start to commence commercial production. Net income decreased slightly to Rp 831 billion from Rp 905 billion in 2009, due to a lower gain of a Rp 487 billion in foreign exchange related to our US$ denominated bonds over the previous year.