Argo Pantes posts $2.5m net profit

JAKARTA (JP): Publicly listed textile company PT Argo Pantes reported a Rp 6.2 billion (US$2.56 million) net profit yesterday for this year's first quarter, up 40 percent on the same period last year.

The company's financial director, Wira Tjendana, said the company's total sales were worth Rp 106 billion, 66 percent of which were generated by exports.

"We are optimistic we will be able to achieve our profit and sales targets this year because the international market for textiles and textile products is picking up," Wira said.

He said the textile market was usually weak in the first quarter.

"But we booked a 15 percent increase in our sales in the first three months", Wira said.

The company aims to post a Rp 30 billion net profit this year, up from Rp 16.3 billion last year, and total sales of Rp 500 billion, up from Rp 449 billion.

Last year Wira said the company's profitability decreased because of the US$35 million restructuring of its main plant in Tangerang, West Java, and an 16 percent rise in cotton prices.

The restructuring replaced 436 shuttle looms with 98 air-jet looms and installed one line of modern dyeing and finishing machines.

"Our dyeing and finishing capacity will increase by 30 percent this year," Wira added. (rid)