Astra net profit in 2004 could increase 10 percent<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Publicly listed automotive company PT Astra International's 2004
\nnet profit is likely to increase by at least 10 percent on the
\nback of higher sales of its automotive products and a gain from
\nthe sale of key assets.<\/p>\n
\"Our consolidated profit in 2004 may increase by at least 10
\npercent. We are still finalizing the figure,\" said Astra finance
\ndirector John Slack on Monday.<\/p>\n
Astra recorded a profit of Rp 4.4 trillion (US$488 million) in
\n2003. With a 10 percent increase, Astra's profit is estimated to
\nreach Rp 4.84 trillion in 2004.<\/p>\n
Slack also said the company's sales were estimated to reach at
\nleast Rp 31 trillion last year from Rp 31.5 trillion in 2003, on
\nstronger car and motorcycle sales.<\/p>\n
Astra sold 154,514 cars in the January-September period last
\nyear, or 38 percent more than the same period of 2003. Motorcycle
\nsales in the nine-month period rose 30 percent to 1.54 million
\nunits.<\/p>\n
According to Slack, last year's higher profit was also
\nattributable to windfall profit of Rp 590 billion from a gain on
\nthe sale of telecommunications firm PT Pramindo Ikat Nusantara.<\/p>\n
Pramindo is a partner of Sumatra's PT Telkom under a joint
\noperation scheme (KSO) and was recently bought out by Telkom.
\nPrior to the acquisition, Astra had a 59.5 percent stake in the
\nfirm.<\/p>\n
Astra -- with more than two-fifths of its shares owned by
\nSingapore's Cycle & Carriage -- now operates in the automotive,
\nagribusiness and financial services sectors.<\/p>\n
For this year, the company plans to allocate some $25 million
\nfor capital expenditure for its automotive businesses. Most of
\nthe funds would be used to expand the capacity of its car and
\nmotorcycle assembly plants.<\/p>\n
Slack said that the company might not enjoy higher profit
\ngrowth this year as compared to 2004, due to an anticipated
\nincrease in production costs following the government's plan to
\nraise fuel prices in the first quarter amid a projected higher
\ninflation rate.<\/p>\n
The situation would be exacerbated by stiffer competition in
\nthe automotive market, as more producers and distributors would
\nrace to release new cars at a lower cost, despite an estimated
\nincrease in volume, he added.<\/p>\n
Slack explained that in order to compensate for the tougher
\nenvironment in the automotive industry, Astra has been planning
\nto focus more on expanding its component and plantation
\nbusinesses by acquiring new companies or plantations and
\nexpanding production output.<\/p>\n
\"I hope our plantation unit PT Astra Agro Lestari and our
\ncomponent maker subsidiary PT Astra Ottoparts can do a lot this
\nyear to improve the company's performance,\" he said.<\/p>\n
Astra shares ended lower by Rp 50 to Rp 9,750 on the Jakarta
\nStock Exchange on Monday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-net-profit-in-2004-could-increase-10-percent-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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