Hexindo upbeat on meeting profit target<\/p>\n
JAKARTA (JP): Publicly listed heavy equipment supplier PT
\nHexindo Adiperkasa is upbeat that its this year's net profit will
\nincrease by about 10 percent to Rp 33.3 billion (US$2.94 million)
\nas targeted despite the sluggish sales during the January to
\nMarch period.<\/p>\n
Company president Rustam Effendi said on Tuesday that although
\nthere was a significant drop during the first three months, its
\ntotal sales were expected to increase by about 5 percent to Rp
\n413 billion ($36.5 million) in 2001.<\/p>\n
\"We're still optimistic we can achieve our target this year,
\nalthough we realize our first quarter results show a
\ncontraction,\" he told reporters after the annual and
\nextraordinary shareholders general meetings.<\/p>\n
Its sales plunged by 24 percent to Rp 61 billion in the
\nJanuary to March period from Rp 80.8 billion in the same period
\nlast year. As a result, net profits dropped 6 percent to Rp 10.9
\nbillion from Rp 11.6 billion.<\/p>\n
Rustam said the company partly attributed the decline during
\nthe first three months to the surge of its operating cost.<\/p>\n
However, he said, the company's performance had been more
\npositive in the second quarter due to some new sales contracts
\nawarded to the company.<\/p>\n
He said, for example, Hexindo secured this month a $25
\nmillion-contract to sell heavy equipments to a mining company
\nwhich operates in Sumatra.<\/p>\n
\"The trend usually goes this way...slow in the first quarter
\nthen faster in the next periods,\" he added.<\/p>\n
In the meeting, the shareholders approved the company's
\nexecutive plan to pay a dividend of Rp 40 per share for 2000.<\/p>\n
The shareholders also appointed Kardinal A. Karim as
\nindependent commissioner, a new post in the company.<\/p>\n
At present, Hexindo, which was established in 1988, has 18
\nbranches in Jakarta; Surabaya; Medan, Pekanbaru and Perawang in
\nthe Riau province; Padang, Jambi, Tanjung Enim in South Sumatra;
\nBandar Lampung, Pontianak, Balikpapan, Banjarmasin, Samarinda,
\nSangatta in East Kalimantan; Makassar; and Palu.<\/p>\n
Hitachi Construction Machinery Co. Ltd., Japan, holds a 40.02
\npercent stake in Hexindo, while Itochu Corporation Japan has a
\n22.55 percent stake in the company and PT Hexindo Adiperwira has
\na 21.81 percent stake.<\/p>\n
The remaining shares are held by Hitachi Construction
\nMachinery Pte. Ltd., Singapore, 5.07 percent and the public,
\n10.55 percent.(05)P<\/p>",
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