Astra projects sales to grow 10%

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.