Astra posts record net income of Rp 5.4t

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.