Hexindo Adiperkasa diversifies its business<\/p>\n
JAKARTA (JP): PT Hexindo Adiperkasa, a publicly listed heavy
\nmachine distributor, announced yesterday that it was preparing to
\nbecome a builder and reconditioner of coal mines.<\/p>\n
Hexindo's vice president, Husni Effendy, told journalists that
\nits diversification plans were approved by shareholders in an
\nextraordinary meeting yesterday.<\/p>\n
\"It doesn't mean that we will change our business. On the
\ncontrary, we must diversify our business in efforts to strengthen
\nour position,\" Husni said.<\/p>\n
He said the company expects to start the new businesses next
\nyear. In the meantime, it is still looking for strategic partners
\nin coal mining.<\/p>\n
Husni would not reveal details of the plans, such as names of
\npotential partners or where investment would originate.<\/p>\n
He did confirm that Hexindo would not raise capital for the
\nbusinesses through the stock market.<\/p>\n
\"For the reconditioning business, we will get financial
\nsupport from our principal companies -- Hitachi Construction
\nMachinery Co. Ltd. and Itochu Corporation, both of Japan,\" he
\nsaid.<\/p>\n
According to Husni, Hexindo boasts a 25 percent share of the
\ndomestic heavy machine market, due mainly to sales of its Hitachi
\nhydraulic excavators.<\/p>\n
He said hydraulic excavators currently accounted for about 60
\npercent of the domestic heavy machine market.<\/p>\n
\"We expect a 26 percent growth in sales this year and
\nhydraulic excavators to remain the major contributor to our
\nsales' revenue,\" he said. \"With about 700 units to be sold, it
\nwill account for 75 to 80 percent of our total sales.\"<\/p>\n
Besides hydraulic excavators, Hexindo sells wheel loaders and
\nforklifts.<\/p>\n
Domestic demand for heavy equipment is estimated to grow by 17
\npercent this year.<\/p>\n
In the first quarter of 1996, Hexindo made net sales of Rp 52
\nbillion (US$22 million), indicating a 68 percent increase over
\nthe same period last year. Its net profit rose 85 percent to Rp
\n3.9 billion over the same period.<\/p>\n
Husni said the company's net sales in 1995 reached Rp 200
\nbillion compared to Rp 151 billion in 1994.<\/p>\n
Net profit also increased from Rp 7.8 billion in 1994 to Rp 13
\nbillion in 1995.<\/p>\n
He said that Rp 3.3 billion, or 25 percent of net profit, has
\nbeen allocated for dividends for which shareholders will receive
\nRp 80 per share. (alo)<\/p>",
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