SUCACO expected to recover this year<\/p>\n
JAKARTA (JP): Publicly listed PT Supreme Cable Manufacturing
\nCorporation (SUCACO) said yesterday its net profit would recover
\nthis year after a sharp drop last year.<\/p>\n
The company's president, Elly Soepono, predicted this year's
\nnet profit would surge to Rp 20 billion (US$8.20 million) after a
\n87 percent drop to Rp 2.08 billion last year.<\/p>\n
Elly said the high profit projection was in line with an
\nexpected increase in the company's sales of cables and related
\nproducts.<\/p>\n
\"We expect our sales to reach Rp 396 billion this year from Rp
\n321.5 billion last year,\" Elly said after the company's
\nshareholder meeting.<\/p>\n
SUCACO makes power and telephone cables, enamel red wire, and
\nmelamine sheets.<\/p>\n
The company had to stop production for three months early last
\nyear when floods hit its West Jakarta plant. The floods cost the
\ncompany Rp 10.93 billion.<\/p>\n
But business returned to normal in the second half of last
\nyear when it made a Rp 13.02 billion consolidated net profit.<\/p>\n
Consolidated net operating profit dropped from Rp 38.53
\nmillion in 1995 to Rp 10.603 million last year, while sales fell
\n22.7 percent to Rp 321.50.<\/p>\n
The company sells most of its products to state
\ntelecommunication company PT Telkom Indonesia and state
\nelectricity company PLN.<\/p>\n
Telephone cable sales to Telkom rose 27.6 percent from Rp
\n103.7 to Rp 132.4 billion, while the power cable sales to PLN
\ndropped 85 percent to Rp 11 million.<\/p>\n
She said SUCACO refused to say how much PT Telkom's orders for
\nthis year were worth but said telephone cable orders would rise
\nthis year.<\/p>\n
The company had also expanded its network with two foreign
\ncompanies to diversify its operations, she said.<\/p>\n
Last year SUCACO set up joint ventures with Japanese
\ndecorative melamine products maker Nihon Decoluxe, and with
\nFrench electrical goods maker Legrand.<\/p>\n
Elly said Supreme Decolux, the joint venture with Nihon, had
\nspend about Rp 42 billion setting up a decorative melamine
\nmanufacturing plant.<\/p>\n
\"The venture started production last February with a capacity
\nof 32,000 sheets of melamine a month,\" she said.<\/p>\n
She said SUCACO owned 70 percent of the joint venture, which
\nhas paid-up capital of Rp 10.5 billion, while Nihon owned the
\nrest.<\/p>\n
Nihon Decoluxe products would be sold domestically and in
\nJapan, she said.<\/p>\n
Elly said the joint venture with Legrand would be set up later
\nthis year.<\/p>\n
The joint venture, with a paid-up capital of US$5 million,
\nwould set up a $10 million plant to make low-voltage electrical
\ngoods.<\/p>\n
Legrand will own 70 percent of the venture.<\/p>\n
SUCACO is listed on the Jakarta Stock Exchange and will pay a
\nRp 100 dividend for the 1996 financial year.<\/p>\n
The company plans to raise its authorized capital from Rp 225
\nbillion to Rp 500 billion this year, she said. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sucaco-expected-to-recover-this-year-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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