Astra Agro projects 200% profit rise<\/p>\n
JAKARTA (JP): PT Astra Agro Lestari, a plantation subsidiary
\nof the country's largest automaker PT Astra International,
\nprojected yesterday a nearly 200 percent increase in net profit
\nthis year, to Rp 270 billion (US$33.75 million) from Rp 90.6
\nbillion in 1997.<\/p>\n
Finance director Benny Tjoeng said the company also expected a
\n82 percent increase in net sales to Rp 1 trillion from Rp 549
\nbillion last year.<\/p>\n
The company, listed on the Jakarta Stock Exchange, recorded
\nnet profit of Rp 63.3 billion and net sales of Rp 342.1 billion
\nin 1996.<\/p>\n
He said Astra Agro Lestari was optimistic of reaching its net
\nprofit and sales targets this year due to an increase in the
\ncompany's crude palm oil (CPO) production and the high CPO prices
\non the international market.<\/p>\n
He said the commodity currently sold at $680 per ton on the
\ninternational market, compared to $290 per ton domestically.<\/p>\n
"We are fortunate enough with the global CPO prices," he said.<\/p>\n
Though the global CPO price is predicted to decline in the
\ncoming months due to ample supply, the company would not be badly
\naffected, he said.<\/p>\n
He said the CPO price in the global market was expected to
\ndecline to $670 per ton in May and $650 per ton in June.<\/p>\n
The company expects to produce 320,000 tons of CPO this year,
\nhe added, up from 254,362 tons of CPO in 1997, due to rapid
\nexpansion of its plantation area.<\/p>\n
"Of the total CPO production in 1998, we expect to export 30
\npercent to the global market," he said, adding that the company
\nsold only about 12,500 tons of CPO in 1997.<\/p>\n
The company produced 196,622 tons of CPO in 1996.<\/p>\n
Benny said the company did not have any significant
\ndifficulties with its foreign exchange debts of about $15 million
\nowed to the country's largest private bank, Bank Central Asia of
\nthe Salim Group.<\/p>\n
Although the debts will mature this year, Benny said "but we
\nstill have bank deposits worth $6 million.<\/p>\n
"Astra Agro Lestari does not have any significant difficulties
\nwith its foreign debts".<\/p>\n
He said the monetary crisis, in which the rupiah's value has
\nfallen by around 70 percent against the American dollar since
\nJuly last year, had not adversely affected the company's
\nperformance as it generated some revenue in dollars. (aly)<\/p>",
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