PT Astra expects to book Rp 627 billion net profit<\/p>\n
JAKARTA (JP): Indonesia's biggest carmaker PT Astra
\nInternational has targeted a net profit of Rp 627 billion (US$257
\nmillion) this year, a 34 percent increase over last year.<\/p>\n
Astra's Finance Director Rini M. Soewandi said here yesterday
\nthat an expected robust growth in automotive sales would enable
\nher company to meet the profit target.<\/p>\n
\"Our net profits in the first quarter are already Rp 119.83
\nbillion, up 63.12 percent from a year earlier,\" Rini said after
\nthe company's general and extraordinary shareholder's meetings.<\/p>\n
In the first quarter its total sales rose 9.14 percent to Rp
\n3.48 trillion, from Rp 3.18 trillion in the same period last
\nyear.<\/p>\n
\"Our new Kijang is well accepted on local and foreign markets.
\nAnd we will increase the production of our Honda motorbikes due
\nto an increase in demand,\" she said.<\/p>\n
At the meetings, shareholders approved the management's
\nproposal to split the nominal value of its shares from Rp 1,000
\n(41.67 US cents) to Rp 500.<\/p>\n
Shareholders also approved the proposal to distribute a
\ndividend of Rp 120 per share.<\/p>\n
Rini said her company's automotive businesses would remain the
\nlargest source of earnings this year.<\/p>\n
Publicly listed PT Astra International launched a new model
\nKijang van in January with 45.80 percent local content.<\/p>\n
The new van comes in 20 different models with a range of body
\nstyles, engines and transmissions.<\/p>\n
Its off the road price ranges from Rp 27.05 million to Rp
\n43.4 million (about US$18,000).<\/p>\n
She said PT Toyota Astra Motor, a subsidiary of Astra
\nInternational, increased the new Kijang production to 7,800
\nvehicles last month to cope with the growing demand, but the
\nwaiting list of buyers was still very long.<\/p>\n
She said this year her company would produce 75,000 Kijang
\nvans, of which 1,370 would be exported to Brunei Darussalam,
\nPapua New Guinea and the South Pacific Islands.<\/p>\n
Astra expects its Honda motorbike sales to reach one million
\nthis year, up almost 53 percent from last year.<\/p>\n
Astra International's chief commissioner Muhammad \"Bob\" Hasan
\nsaid his company's car sales had dropped in the first nine months
\nlast year after the government announced its controversial
\nnational car policy.<\/p>\n
Under the policy, the government allows PT Timor Putra
\nNasional to produce the national car, a 1,500cc-engine Timor
\nsedan, with tax and tariff exemptions.<\/p>\n
PT Timor Putra is controlled by Hutama Mandala Putra, the
\nyoungest son of President Soeharto.<\/p>\n
Astra's car sales last year dropped to 160,563 vehicles, from
\n206,833 vehicles in 1995, causing its market share to decrease to
\n48.4 percent from 54.6 percent.<\/p>\n
\"We expect a strong growth this year. As long as our economy
\ngrows at a high level the demand for cars will continue to
\nstrengthen,\" he said.<\/p>\n
He said many buyers have to wait until September for a new
\nKijang as Astra cannot meet the strong demand. (bnt)<\/p>",
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