AOP reports lower sales, net profit up

The Jakarta Post, Jakarta

The country's largest automotive parts producer PT Astra Otoparts (AOP) announced a slight decline in 2002 sales partly due to weaker exports.

But the company said in a report to the Jakarta Stock Exchange that net profit rose slightly on foreign exchange gain and lower interest cost on its debt.

AOP said sales fell by 1.6 percent to Rp 2.06 trillion (about US$328 million) last year from Rp 2.09 trillion in the previous year.

It said that exports of motorcycle parts and cameras dropped by 30 percent.

The company added that the divestment of ownership in PT GS Battery Inc. in the middle of 2001 had contributed to the group's lower sales revenue.

AOP is a holding company for automotive parts and components, and is a subsidiary of the giant automotive maker PT Astra International. AOP has 26 subsidiaries making various products.

The company's business outlook remains gloomy due to the current global economic uncertainty and slowing domestic consumption at home ahead of the 2004 general election, analysts said.

Weak domestic consumption is already indicated by a 6.5 percent drop in motorcycle sales in the first quarter of this year from the same period last year. Analysts were expecting lower motorcycle sales for the full year.

But AOP said that net profit last year slightly increased to Rp 257 billion from Rp 255 billion in the previous year.

The increase was attributed to higher revenue from subsidiaries, lower interest cost and foreign exchange gain.

The company managed to maintain the performance of its core businesses with a 14 percent jump in original equipment manufacturing (OEM) sales and a 6 percent increase in the sales of batteries and shock absorbers.