Heavy Equipment Distributor United Tractors Announces Dividend Payout
Heavy equipment distributor United Tractors announced to pay out dividend amounting to IDR 2.31 trillion (USD $237.9 million), which represents about 40 percent of the company's net income in 2012 (IDR 5.78 trillion). Dividend per share is set at IDR 620 (USD $0.064) and includes interim dividend of IDR 210 that was distributed in November 2012. The remaining IDR 410 per share will be paid out on 31 May 2013. United Tractors also announced to launch two new products.
Director of United Tractors Loudy Irwanto Ellias announced that the two new products, which will be launched in this quarter (Q2-2013), are the Komatsu HM400 and Komatsu PC550. Both machines are suitable for small and medium-scale mining.
The year 2012 was a difficult one for heavy equipment sales as continued global economic turmoil hit the economies of China and India (both of which had maintained a relatively high level of economic growth in the previous year). In 2012, however, the two countries recorded declining growth rates and this impacted on demand for Indonesia’s main commodities, particularly in the mining and agriculture sectors. It resulted in falling commodity prices as well as reduced mining activity. As a logical consequence Indonesian demand for heavy equipment fell in 2012.
Indonesia's Heavy Equipment Sales:
| 2009 | 2010 | 2011 | 2012 | |
| Heavy Equipment Units |
6,644 | 11,781 | 17,360 | 14,421 |
Source: United Tractors
As a result, United Tractors' net profit in 2012 fell 2.1 percent to IDR 5.78 trillion from IDR 5.90 trillion in 2011. Sales volume for Komatsu heavy equipment units fell 26.8 percent from 8,467 units to 6,202 units in 2012.
United Tractors, subsidiary of Astra International, is the largest distributor of heavy equipment in Indonesia. The company controls about 40 to 45 percent of Indonesia's heavy equipment market.