Astra books 121% surge in net revenue

JAKARTA (JP): Publicly listed automotive conglomerate PT Astra International announced on Tuesday its first-half net revenue jumped 121 percent to Rp 12.9 trillion (US$1.55 billion) from Rp 5.84 trillion in the same period last year.

But the company said the appreciation of the U.S. dollar against the rupiah had increased "miscellaneous expenses", causing the company to suffer a net loss of Rp 702 billion in the first half of this year, compared to a net profit of Rp 1.53 trillion in the same period in 1999.

"Although we had a net loss, we are still thankful Astra's cash flow is quite good, particularly from operations. We will continue to maintain this position to anticipate various possibilities, both in the short and medium term," said Astra president T.P. Rachmat in a press statement.

The company said miscellaneous expenses jumped 133 percent to Rp 2.47 trillion from Rp 1.06 trillion in the same period last year. The increase was mainly due to the appreciation of the dollar against the rupiah, which fell from Rp 6,726 per dollar at the end of June 1999 to Rp 8,735 at the end of June 2000.

"Most of the forex loss is unrealized," the press release said, providing no further details.

Dollar-denominated debt increased Astra's exposure to the fluctuations of the rupiah against the dollar.

Astra said the largest contributor to the surge in net revenue was the automotive division, which contributed Rp 10.88 trillion, a 172 percent increase from the Rp 4 trillion in the same period in 1999.

The company also said its operating profit increased 123 percent (excluding equity income) to Rp 1.59 trillion.

"The rise in the national automotive market, both for cars and motorcycles, during the first six months of 2000 provided a positive impact to the company," noted Astra Corporate Secretary Aminuddin.

The release said Astra's car sales reached 64,267 units, or a 518 percent jump compared to the first six months of last year.

In comparison, national car sales in the same period totaled 126,644 units, up from 22,877 units in the first half of 1999.

Astra said its motorcycle sales increased 85 percent to 194,160 units, compared to a 101 percent increase in national motorcycle sales to 357,283 units.

Astra forecast the nation's automobile market this year would reach 240,000 units, while it expected the motorcycle market to reach 800,000 units, assuming the domestic social and political conditions continued to improve.

The company said its plantation operation PT Astra Agro Lestari also had a stronger performance, contributing Rp 530 billion to the group's overall net profit, a 24 percent increase from the first six months of last year.

The press release said its financial division reported a 26 percent increase in net profit to Rp 381 billion.

It added that its timber industry and heavy equipment division reported a 4 percent and 34 percent increase in first-half net profit, respectively.

But Astra said that its information technology and consumer goods divisions reported a 8 percent decline in net profit to Rp 574 billion from Rp 619 billion.

The company said this was primarily due to the fact that its consumer goods subsidiary only contributed five months of revenue because of its divestment.(rei)