Semen Gresik publishes 2002 results but dispute rages on<\/p>\n
Dow Jones, Jakarta<\/p>\n
PT Semen Gresik said on Monday its 2002 consolidated net profit
\nfell 16 percent from the previous year to Rp 266.77 billion
\nrupiah (US$32.14 million) - an announcement which could pave the
\nway for local stock market regulators to lift a trading
\nsuspension on the company's shares.<\/p>\n
But an end to a dispute between the company, which is 51
\npercent owned by the government, and its wholly owned unit Semen
\nPadang, appears far from over, analysts say.<\/p>\n
The dispute, which centers around the government's plans to
\nsell a controlling stake in Semen Gresik to Cemex S.A. of Mexico,
\nwas responsible for the late filing of the consolidated 2002
\nresults, and the share trading suspension.<\/p>\n
Executives at Semen Padang - which is based on Sumatra island
\nand accounts for 40 percent of Semen Gresik's total annual cement
\noutput - say they are opposed to a foreign company taking over.<\/p>\n
Earlier this year, executives at the unit declined to hand
\nover financial details for 2002 to Semen Gresik management and
\nofficials of the state enterprise ministry in Jakarta.<\/p>\n
The Jakarta Stock Exchange suspended trading in Semen Gresik
\nstock May 12 after the company filed the earnings without
\nconsolidating the performance of Semen Padang.<\/p>\n
Semen Gresik has been able to obtain the results from its unit
\nin the past couple of weeks, and refile its 2002 results, said
\nAgung Wiharto, an investor relations official at the cement
\ncompany's Jakarta office.<\/p>\n
Still, auditors have not yet had time to finish their review
\nof Semen Padang's results.<\/p>\n
The stock last traded at Rp 7,900 per share, down 3.1 percent
\nsince the start of the year due to the row. The benchmark index
\nclimbed about 10 percent in the same period.<\/p>\n
The Semen Gresik saga highlights problems that face foreign
\ncompanies that try to buy Indonesian assets.<\/p>\n
Cemex took a 25.5 percent stake in Semen Gresik after the
\n1997-98 Asian financial crisis and had a deal with the government
\nto increase that stake to 51 percent in 2001 for a further $420
\nmillion investment.<\/p>\n
That deal never took place as Semen Padang's management
\norchestrated opposition from workers and local politicians in
\nPadang, the capital of West Sumatra.<\/p>\n
The central government, unwilling to exacerbate separatist
\ntensions, has passed laws giving provinces more control over
\nrevenues.<\/p>\n
In Semen Padang's case, this has led to a drawn-out battle
\nwhich has left Cemex and the government frustrated.<\/p>\n
Refusing to hand over financial details was the latest
\ndelaying tactic by Semen Padang's management aimed at blocking
\nthe sale to Cemex.<\/p>\n
Explaining its results, Semen Gresik said sales in 2002 were
\nup 11 percent compared with the previous year to Rp 5.177
\ntrillion.<\/p>\n
But the increase in sales was offset by higher cost of sales,
\nwhich rose 21 percent to Rp 3.491 trillion. Gross profit fell 6.2
\npercent to Rp 1.686 trillion. Higher interest expenses, which
\nrose 8.7 percent to Rp 520.78 billion, also helped depress the
\nnet earnings figure, the company said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-gresik-publishes-2002-results-but-dispute-rages-on-1447893297",
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