Sampoerna suffers Rp 180b in net loss 1998: Director<\/p>\n
JAKARTA (JP): Publicly listed cigarette manufacturer PT
\nHanjaya Mandala Sampoerna suffered a Rp 180 billion (about US$21
\nmillion) net loss in 1998, compared to a net profit of Rp 20.3
\nbillion in 1997, the company's director, Ekadharmadjanto Kasih,
\nsaid on Tuesday.<\/p>\n
Eka said the company recorded an operating income of Rp 1.07
\ntrillion in 1998, a 75 percent increase from the figure in 1997,
\nbut the huge foreign exchange losses during the year put the
\ncompany into the red.<\/p>\n
\"The negative net income was due to the company's Rp 900
\nbillion foreign exchange loss recorded by the end of 1998,\" Eka
\ntold a press briefing on the company's unaudited 1998 financial
\nstatement.<\/p>\n
The sharp depreciation of the rupiah against the U.S. dollar
\nhas become a great financial burden to the company, as most of
\nits foreign debts were unhedged.<\/p>\n
The rupiah, which was only about Rp 2,500 against the
\ngreenback before the crisis hit Southeast Asian countries in
\nJuly, 1997, plunged to a low of Rp 17,000 in January last year.
\nThe rupiah managed to stabilize to the range of Rp 8,000 and Rp
\n9,000 in the second half of last year. On Tuesday, the rupiah
\ntraded at Rp 8,975 to the dollar.<\/p>\n
Eka said Sampoerna's outstanding U.S. dollar debts, which
\nreached a total of $430 million in 1997, declined to $380 million
\nin 1998.<\/p>\n
He estimated that the foreign debt was expected to further
\nfall to $250 million by the end of this year.<\/p>\n
\"Practically all of the company's debt exposure is in the U.S.
\ndollar,\" Eko said, adding that some of its debts are in the form
\nof bonds worth $200 million.<\/p>\n
Bonds worth $107 million have been repaid at an aggregate
\ndiscount of 50 percent, he said.<\/p>\n
Sampoerna has recently reached an agreement with its major
\nbond holders to convert a part of the bonds into the company's
\nequity, he said.<\/p>\n
The bonds to be converted into equity could be worth 3.1
\npercent of the outstanding shares, he said.<\/p>\n
The company, according to Eka, also has a loan of US$140
\nmillion from a syndicate of 14 foreign banks, which was jointly
\narranged by the Chase Manhattan Bank and Bank of Tokyo
\nMitsubishi. The loan will mature on June 3 this year.<\/p>\n
\"Sampoerna is trying to reschedule its syndicated loan for
\nanother four years of loan tenor. Currently, we are paying our
\nfinancial obligation to the syndication banks on time,\" Eka told
\nreporters.<\/p>\n
Eka predicts Sampoerna's sales performance in 1999 will be
\naround the same level of that last year. The sales volume in 1998
\nincreased by three percent from the previous year. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sampoerna-suffers-rp-180b-in-net-loss-1998-director-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}