Asahimas net profit plunges to Rp 420m

JAKARTA (JP): Glass maker PT Asahimas Flat Glass' net profit plunged to Rp 420 million (US$175,000) in the first quarter this year from about Rp 18.4 billion in January to March 1996.

The company said yesterday that the net profit plunge resulted from "price competition" during the three-month period.

Asahimas' net sales dropped by 15.3 percent to Rp 82.4 billion during the first quarter, down from Rp 97.3 billion in the same period of 1996.

For the first quarter, net sales of commodity and figured glass and high quality and specialty glass accounted for 32.16 percent and 34.59 percent respectively, while fabricated glass represented 33.25 percent.

The company said it was optimistic that its financial performance would improve in the second quarter, given a promising increase beginning in March.

It said it had orders from 20 new projects in Jakarta and Surabaya.

These projects, now under construction, are due to be completed later this year or next year. They include five hotels, nine office buildings, four apartments, three shop-house complexes and two hospitals.

These include the Peninsula and Senayan hotels and Menara Matahari in Lippo Karawaci, Tangerang.

Asahimas Flat Glass is the largest flat glass maker in the country. It can make 420,000 million tons a year.

The company is building a fourth plant in Surabaya, this should be completed in June. (09)