Sumalindo Lestari expects higher earnings<\/p>\n
JAKARTA (JP): Publicly listed timber firm PT Sumalindo Lestari
\nJaya, a subsidiary of the country's largest automaker Astra
\nInternational, expects an increase in earnings this year despite
\nthe economic crisis.<\/p>\n
Company president Adi Resanata Somadi Halim said that rupiah's
\nsharp fall against the American dollar was a windfall for the
\nfirm, which exported 70 percent of its products overseas last
\nyear.<\/p>\n
The rupiah is currently hovering around 14,000 to the American
\ndollar, compared to its precrisis level of 2,450 in July last
\nyear.<\/p>\n
\"We expect bright prospects this year because the rupiah's
\nfall against the dollar will make earnings in rupiah much
\nhigher.\"<\/p>\n
He declined to divulge projected sales and net profit targets
\nthis year.<\/p>\n
The company's net sales reached a total of Rp 133 billion in
\nthe first quarter of this year, compared to net sales of Rp 349
\nbillion for all of last year, he added.<\/p>\n
He said that net profit totaled Rp 10 billion in the first
\nthree months over a substantial loss in the same period last
\nyear.<\/p>\n
\"With the rupiah remaining weak against the dollar, we will
\nsee better earnings this year.\"<\/p>\n
He said the company marketed around 111,110 cubic meters of
\nlogs in 1997, 163,200 cubic meters of plywood, 7,700 cubic meters
\nof blockboard and 120,000 cubic meters of medium density board
\n(MDF) overseas, including to Japan, Hong Kong, South Korea, the
\nUnited States and Europe.<\/p>\n
Adi said the company -- currently 82.06 percent owned by Astra
\nInternational, 9.53 percent by timber firm PT Barito Pacific
\nTimber controlled by Prajogo Pangestu, 0.14 percent by a
\ncooperative and 8.27 percent by the public -- would boost its
\nexport market to offset the decline in the domestic market due to
\ndire economic situation.<\/p>\n
He stated the firm's total foreign debt was US$30 million,
\nwhich would mature in the next three years.<\/p>\n
But he refuted reports on the firm's forest concession in
\nKalimantan, which was alleged to have breached forestry
\nregulations.<\/p>\n
\"We have not received any warnings yet from the forestry
\nministry,\" he said. (aly)<\/p>",
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