Astra projects sales to grow 10%

Rendi A. Witular, The Jakarta Post, Jakarta

Publicly listed automotive giant PT Astra International estimates sales this year will grow by between 5 percent and 10 percent on an increase in new car sales, especially from the newly launched Toyota Avanza and Daihatsu Xenia multipurpose vehicles.

Astra finance director John Slack said that currently Astra had received 50,000 orders for the two cars, which would become the main driver of the company's sales this year.

"We expect our sales to grow by between 5 percent and 10 percent this year," said Slack to reporters on the sidelines of a ceremony at the Jakarta Convention Center on Wednesday.

He said that the company booked sales last year of around Rp 30 trillion (US$3.57 billion), or relatively the same as 2002.

Late last year, Astra launched Avanza and Xenia, which were jointly manufactured by Daihatsu Motor Co. and its parent company Toyota Motor Corp. The two cars come with a relatively cheap price tag.

The country's car sales this year is expected to reach around 360,000 units.

Regarding the company's debt settlement, Slack said that it planned to accelerate the payment of its remaining $325 million debt by reducing it to $250 million this year.

He also said that the company planned to allocate 25 percent of its net profit last year, or Rp 200 per share, for dividend payment. The company plans to hold a shareholders meeting in May to approve the payment.

A third of Astra shares is owned by Singapore-based Cycle & Carriage Ltd.

On the Jakarta Stock Exchange, Astra shares dropped by Rp 50 to Rp 5,400 on Wednesday.