The Company’s net sales increased by 5.3% to Rp 3,200 billion in the first quarter of 2014 from Rp 3,038 billion in the first quarter of 2013 . The positive momentum in export sales, which started in the second half of 2013, continued in the first quarter of 2014 with export sales growing by 29.6% compared to the corresponding period in 2013. Sales to the US and Europe recovered strong on the back of their improving economies. Another driver in the Company’s sales growth has been the further penetration into the passenger car radial OE segment, where sales and sales volumes more than doubled year-on-year. Sales of the Low Cost Green Car (LCGC) models, to which the Company is a major tire supplier, continue to be robust. In addition, the Company has started to supply tires for the Honda Mobilio of which selling commenced in the first quarter of 2014, with encouraging initial sales numbers. On the other hand domestic replacement market sales exhibited some weakness as volcanic eruptions and persistent wet weather, often resulting in flooding, dampened demand as well as competition intensified.
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