Astra 2003 net profit up by 21.6%

The Jakarta Post, Jakarta

Publicly listed PT Astra International announced on Tuesday that audited 2003 net profit increased by 21.6 percent on the back of a gain from the sale of key assets, and greater sales pushed by stronger consumer spending.

The company said in a press statement that net profit reached a record level of Rp 4.4 trillion (about US$518 million), compared with Rp 3.6 trillion the previous year.

"It is a record for Astra to achieve a net income of Rp 4.4 trillion," Astra president Budi Setiadharma said in the statement.

Astra, which is more than one-third owned by Singapore's Cycle & Carriage, operates in the automotive, agribusiness and financial services sectors.

Last year, the company sold a 46 percent stake in PT Toyota Astra Motor (TAM) to Japanese partner Toyota Motor Corp. TAM manufactures Toyota cars for the Indonesian market. Astra still owns a 5 percent stake in the company, while Toyota controls a 95 percent stake.

But Astra retains a majority 51 percent stake in another joint venture distributing Toyota cars.

Astra gained around Rp 1.8 trillion from the sale.

The statement said that Astra made an early debt payment of $80 million on Tuesday, thus further reducing its debt level. Since last year, the company has been trying to reduce its large overseas debts, which have stalled spending for investment.

The company said it had benefited from increasing stability in the country's macroeconomic condition, which had boosted consumer spending in the country.

Astra said that total sales increased by 2.6 percent last year to Rp 31.5 trillion from Rp 30.7 trillion in 2002.

It said that sales of cars under the Astra group increased to 147,074 units from 135,740 units. Sales of Honda motorcycles rose by 9.7 percent to 1,576,694 units from 1,437,068 units.

Astra said that along with the increase in car and motorcycle demand, net revenue from the financial services and agribusiness divisions also increased.