United Tractors was established
in 1972, it became the authorized distributor of Komatsu and Tadano in 1973. As
a subsidiary of Astra International, UT continued to expand its business in
mining, construction, remanufacturing and energy along its milestone in
1972-2015.
Astra International Tbk has more
than 59 % shares in united tractors, the remaining share is owned by public.
Due to low price of coal UT looked
for new business line for diversification of its business portfolio. In 2015 it
added energy, construction industry and gold mining as new business lines. The
corporation has done several acquisitions of companies in another business line
to diversify its business portfolio.
At 2015, it acquired Acset
Indonusa Tbk which operated in construction industry business, it bought 50.1 %
shares. To enter energy business line,
it also developed power plant at central java in the same year through PT
Unitra Persada Energia. In addition, to improve mining business line, the
company acquired gold mining at Sumbawa, it purchased 80 % shares of PT Sumbawa
Jutaraya through its subsidiary, PAMA. In addition, the company has been
appointed as the exclusive authorized distributor of SCANIA, an on road bus
product for indonesia. Bus rapid transit system of Jakarta, Trans Jakarta has
already used SCANIA in its transportation service.
The diversification is done
because the revenue of the company in the past five years is in negative trend.
The decline of coal price which influenced heavy equipment sector including
Komatsu product was one of factors that are decreasing income. The decrease in
demand of commodities was occurred in global market as the GDP growth in china
was slower in 2015. Although Komatsu product is the market leader of heavy
equipment in the world, the influence of downturn in its business line is
inevitable.
The company’s revenue in 2015 was
still dominated by mining contracting sector; it was more than 61 % of total
sales. The second largest sector contribution was from construction machinery,
it was more than 27 % of total sales.
Despite the revenue declined the
company was able to improve gross margin in 2015, the US dollar currency which
was stronger increasing the margin. Besides, the ROA and ROE were suffered,
those ratio declined because of the decrease of net profit in 2015.
The company seemed trying to turn
its performance better with diversification; it did strategic acquisition to
enter new business line.
