Two listed firms report profit declines<\/p>\n
JAKARTA (JP): Two companies listed on the Jakarta and Surabaya
\nstock exchanges reported declines in after-tax profits for their
\n1993 operations in the annual meetings of their shareholders here
\non Tuesday.<\/p>\n
PT Eratex Djaja Ltd., a garment manufacturer based in
\nProbolinggo, East Java, reported that its after-tax profit fell
\nby 19 percent to Rp 7.5 billion (US$3.4 million) last year from
\nRp 6.08 billion in 1992. PT Clipan Finance Indonesia, a Jakarta-
\nbased multi-financing company, said that its after-tax profit
\ndeclined by 16.4 percent to Rp 3.14 billion from Rp 3.76 billion.<\/p>\n
Eratex President David Wan Sam Hung told shareholders that the
\nprofit decline was caused by lower demand for textiles and
\ngarments in the United States and European countries and
\nincreasing tax payments.<\/p>\n
Hung said Eratex will distribute cash dividends of Rp 90 per
\nshare to its shareholders on July 21.<\/p>\n
Eratex, which started operating in 1972, is 25 percent owned
\nby the Hong Kong-based Eastern Cotton Mills Ltd., 22.5 percent by
\nthe Bermuda-based UniSouth Holdings Ltd. and 2.5 percent by
\nLimmen Investment Ltd. of Liberia. The other 50 percent is owned
\nby the public.<\/p>\n
The company produces various textile products, including
\nLevi's garments for the San Francisco-based Levi Strauss & Co.<\/p>\n
Sales<\/p>\n
Hung said Eratex's sales revenues actually increased by 2.8
\npercent to Rp 81.17 billion last year from Rp 78.92 billion in
\n1992. However, the doubling of income taxes to Rp 3.04 billion
\nfrom Rp 1.54 billion and the decline in revenues from deposit
\ninterest to Rp 5.22 billion from Rp 6.33 billion caused the
\ndecrease in profits.<\/p>\n
Commissioner Andy Purnomo told shareholders that demand for
\ntextile products on the world market is expected to increase this
\nyear, in line with improvement in the economies of industrial
\ncountries, particularly the United States.<\/p>\n
Eratex, which employs 5,000 workers, operates weaving machines
\nwith 53,000 spindles and 1,000 sewing machines.<\/p>\n
One company executive told The Jakarta Post that the
\nmanagement will improve its workers' welfare this year following
\na strike in April.<\/p>\n
The president of Clipan Finance, Philippe L. Bonin, told
\nreporters after its shareholder meeting that the company's profit
\ndecrease was caused mainly by a drop in revenue and a decline in
\ninterest rates.<\/p>\n
The company's revenues decreased by 14.6 percent to Rp 31.48
\nbillion last year from Rp 31.54 billion in the previous year, he
\nsaid.<\/p>\n
Bonin said the company will distribute cash dividends of Rp
\n102 per share to its shareholders on July 22. (09\/02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-listed-firms-report-profit-declines-1447893297",
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