PT HM Sampoerna posted $166.3m net profit in 1996<\/p>\n
JAKARTA (JP): Publicly listed cigarette maker PT HM Sampoerna
\nbooked Rp 394 billion (US$166.3 million) net profit in 1996, 6.2
\npercent lower than the Rp 420 billion projected.<\/p>\n
Finance director Ekadharmajanto Kosasih said the worse-than-
\nexpected result was because of losses in the company's
\ninternational operations.<\/p>\n
He said the company's international operations lost US$13
\nmillion.<\/p>\n
President of the firm Putera Sampoerna said the company
\nexpanded its overseas operations in Malaysia, Myanmar, Vietnam
\nand the Philippines at a cost of about US$60 million.<\/p>\n
The company has operated in Malaysia since 1990 with a
\nproduction capacity of 300 million cigarettes a year.<\/p>\n
It has been in Vietnam since 1995 and its plant there can make
\n300 million cigarettes a year.<\/p>\n
In Myanmar it can make 100 million cigarettes a year and in
\nthe Philippines 300 million a year.<\/p>\n
Sampoerna said his company had expected its international
\nloss. \"One company had to anticipate a $10 million loss in the
\nfirst year of international operation,\" he said.<\/p>\n
The company's share price dropped Rp 1,050 to Rp 13,300.<\/p>\n
ING Barings Securities Laksono G Widodo said the drop was
\nbecause investors were disappointed with the company's
\nlower-than-expected profits.<\/p>\n
He said the company's net profits were initially projected at
\nRp 440 billion which was then revised to Rp 420 billion.<\/p>\n
\"The investors had been disappointed with its profit revision
\ntarget,\" he said.<\/p>\n
Despite the poor profit result, the company's unaudited net
\nsales reached Rp 2.30 trillion in 1996, up from 1995's Rp 1.68
\ntrillion and forecasted to reach Rp 3.73 trillion in 1997 and Rp
\n4.22 trillion in 1998.<\/p>\n
The company also forecasted a Rp 528 billion net profit in
\n1997 and Rp 603 billion in 1998.<\/p>\n
Sampoerna said the company was considering moving into
\nThailand, China and Korea by buying companies. \"We have not
\nentered Thailand or China due to their monopolistic market,\" he
\nsaid.<\/p>\n
Last June the company issued bonds worth US$200 million; $100
\nmillion was used to finance its domestic expansion.<\/p>\n
\"We still have $100 million in cash to acquire other companies
\nin the region,\" he said. (09)<\/p>",
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