Astra posts record net income of Rp 5.4t

Leony Aurora , The Jakarta Post, Jakarta

With over 483,000 vehicles sold last year, publicly listed automotive giant PT Astra International saw its net income in 2004 surge to a record high of Rp 5.4 trillion (US$577.54 million).

Consolidated net profit of Astra and its subsidiaries rose 22.3 percent from Rp 4.4 trillion booked in 2003, the company said in a statement released on Monday.

"Astra's better performance this year can be attributed to Indonesia's favorable economic condition combined with our business strategies," president Budi Setiadharma said in the statement.

The country's economy expanded by 5.1 percent last year, mainly spurred by consumption. Lower interest rates and easily obtainable credit have driven consumers to buy cars and motorcycles as well as other goods.

Due to strong demand of its new Multi Purpose Vehicles (MPVs) like the Daihatsu Xenia, Toyota Avanza and the much-awaited Toyota Kijang Innova, Astra sold 217,431 units last year, increasing its market share to 45 percent from 41.5 percent in 2003.

This year, Astra aims to maintain its market share of 45 percent of 530,000 units, a projected market by the Association of Indonesian Automotive Manufacturers (Gaikindo).

Astra, through its brand Honda, also saw a 29.1 percent increase in motorcycle sales over two million units as compared to 2003.

The company is aiming to see growth in motorcycle sales up to 5.3 million units, or 50 percent of this year's market share.

Astra has over 120 subsidiaries, including plantation company PT Astra Agro Lestari, component maker PT Astra Ottoparts and heavy equipment producer PT United Tractors (UT).

Astra increased its stake in Astra Agro to 79.64 percent from 63.26 percent and in UT to 56.45 percent from 49.12 percent. With the acquisition, UT's financial report has been consolidated into Astra.

The company also reported that it had paid up its remaining restructured debts of $112 million and Rp 139 billion, which were supposed to mature in 2006.

Last November, Astra entered a three-year revolving credit facility with an international banking consortium to get a two- tranche loan for working capital of $170 million and Rp 600 billion.

More than two-fifths of Astra's shares are owned by Singapore's Cycle and Carriage. The shares ended lower by Rp 50 at Rp 10,900 on the Jakarta Stock Exchange on Monday.