Gajah Tunggal Boosts Profits with Increased Sales, Reduced Expenses
Indonesian tyre manufacturer Gajah Tunggal has increased its nine-month operating income (981.3 billion Indonesian rupiahs; £68.6 million) and net income (664.2 billion IDR; £46.4 million) by 29.4 and 10.7 per cent respectively on the back of rising sales in domestic and export sales during 2010’s first three quarters. A report by Bisnis Indonesia said the country’s largest tyre producer scored particularly high sales in the USA, which have risen 42.5 per cent to total 840.7 billion IDR.
Domestic sales – which contributed 62.79 per cent of the company’s total sales – totalled 2.82 trillion IDR, while foreign markets (37.2 per cent) reached 2.6 trillion IDR. Part of the company’s rise in profits was reportedly down to its saving of 7.25 per cent of its operating costs during the period, reaching 465.7 billion IRD.
With sales having grown 21.6 per cent to 7.1 trillion IDR in the first nine months, the company is expecting to achieve 9.9 trillion IDR net sales (or growth of 20-25 per cent) by the end of the year. President director of the company, Catharina Widjaja said the estimated sales increase is mainly driven by tyre sales target this year that may surpass 30 million units, prompted by hefty growth in the Indonesian automotive market and improving conditions in global economies.