0 UNTR sees lower market, INTA bets on 15-20% rise in sales

Heavy equipment distributors PT United Tractors (UNTR) and PT Intraco Penta (INTA) have different expectations for sales this year amid a gloomy outlook for mining. However, both say that they expect increased sales to non-mining sectors. Corporate secretary Sara Loebis said that UNTR would likely see a lower market, or flat at best, due to the uncertainty of a recovery in the coal market. About half of UNTR’s sales go to the mining industry, particularly coal producers. 

“Last year, we saw a good first half but a declining second. The pattern [this year] may be similar. We will be happy if our sales volume is the same as that of last year,” Sara said. According to Sara, UNTR, which is 59.5 percent owned by diversified conglomerate PT Astra International, estimates that its sold around 6,200 units in 2012. UNTR was badly affected by the decline in coal prices last year, which has made coal miners reluctant to invest in new heavy equipment. The company expects no change in this first quarter. 

“In the first quarter, customers’ need for equipment is usually low due to heavy rain at mining sites. We will see in the second quarter whether coal prices rise and encourage firms to invest in new heavy equipment,” Sara said. UNTR, whose main product is the Komatsu brand, currently holds a 43 percent share in the country’s heavy-equipment market. Sara said that UNTR expected growing sales to the plantation and construction sector to help the company deal with the depressed mining market. 

It also expects spare-part sales to rise by around 10 percent. Another Jakarta-listed heavy-equipment distributor INTA is expecting to see an increase of between 15 and 20 percent in sales this year, according to financial director Fred Lopez Manibog. Given the expected growth, INTA’s sales would be around 1,440 units as the company estimates that last year’s total sales were around 1,200 units. Fred pointed out that the driver of his company sales growth would be its attempt to diversify its distribution beyond mining, into agriculture, palm and sugarcane plantations, infrastructure and the cement sector. 

INTA, he added, had also established two new subsidiaries to focus on certain brands. INTA currently holds the license to distribute several brands, including Volvo, Bobcat and Sinotruck. “The two subsidiaries are Intraco Penta Prima Service — which focuses on Volvo distribution- and Intraco Penta Wahana — which focuses on other brands. Our new brand Sinotruck has also entered the infrastructure and transportation sector, with total sales last year of almost 200 units of the Sinotruck brand,” Imam Liyanto of corporate finance and investor relations said. The proportion of INTA’s sales to the mining industry fell to around 70 percent in 2012, from the previous 80 percent. The company expects to see a continuing reduction in its sales to the mining sector.

—JP/ Raras Cahyafitri
source : the jakarta post