Gajah Tunngal Reports 1st Half Sales Drop

Faced with weak global demand for tyres during the first half of 2009, Indonesian manufacturer PT Gajah Tunggal has reported a year on year decline for this period. According to the company, sales fell in the first six months of 2009 by 2.9 per cent to nearly 3.8 trillion rupiah (about £232 million). Operating margin fell from 9.5 per cent in the first half of 2008 to 6.4 per cent. EBITDA is estimated for the first six months of the current fiscal year to be US$37 million; during the same period of last year it was $57 million. Notwithstanding, the first half balance sheet includes a net profit of 145 billion rupiah (about £8.6 million).