JAKARTA (Yosefardi) – Tire manufacturer PT Gajah Tunggal Tbk (GJTL) cuts its capital expenditure (capex) to US$100 million for this year from initial US$140 million as weather factor hits expansion.
The company had decided to postpone the establishment of tire testing center which costs US$40 million. The company also plans to build center for development and survey which costs US$10 million.
GJTL targets to sell 3.9 million tires this year, a 6% rise compared to last year. The company booked revenues of Rp6.1 trillion in first half of this year, declined 3.7% from Rp6.3 trillion in the same period of last year. Net profit fell 12.6% to Rp459.5 billion.
PT Gajah Tunggal Tbk (GJTL) allocates Rp349.35 billion for buying back maximum 174.24 million shares, representing 5% of its total issued shares. The buy back of shares is scheduled for September 5, 2013 until December 4, 2013.