Sobering 2006 Financials for PT Gajah Tunggal

Recently released income statements indicate that PT Gajah Tunggal Tbk, manufacturers of the GT Radial brand and ranked as one of the world’s 30 largest tyremakers, had a challenging year during 2006.

While net sales for the company increased by 13.2 per cent to 5,470 billion Indonesian rupiahs (£314.4 million) in the year to December 31, 2006, operating income dropped from 407 billion rupiahs (£23.4 million) at the end of 2006 to 365 billion (£21.0 million) a year later. Net income dropped a worrying 65.9 per cent to 118 million rupiahs (£6.8 million).

Quarterly figures confirm the trend towards higher sales yet lower income, with quarterly net sales in the period to March 31, 2007 posted as 1,535 billion rupiahs (£88.2 million) as opposed to 1,229 billion a year earlier. Operating income increased from 111 million rupiahs (£6.4 million) to 171 million (£9.9 million). However net income for the quarter was scarcely a fraction of that gained a year earlier, down from 215 million rupiahs (£12.4 million) in March 2006 to just 12.9 million (£739,000) this year.