Astra reports $200m loss in first quarter

Astra reports $200m loss in first quarter

JAKARTA (JP): Publicly listed PT Astra International said
yesterday that it booked a net loss of Rp 2.2 trillion (about
US$200 million) during the first quarter of this year due to its
increasing financial burden.

Nevertheless, Astra reported that the value of total
consolidated sales rose 3.9 percent to Rp 3.61 trillion from Rp
3.48 trillion in the first quarter of 1997.

Astra spokesman Aminuddin said the company's financial burdens
rose to Rp 2.75 trillion in the first quarter of this year from a
mere Rp 205 billion in the same period of last year.

He said the increasing financial burdens resulted from the
sharp depreciation of the rupiah against the U.S. dollar, rising
domestic interest rates and increasing swap premiums.

The rupiah dropped from 2,419 at the end of March 1997 against
the greenback to 8,325 at the end of March 1998.

Because of the sharp drop, the company's foreign debt
increased drastically in rupiah terms, which cost the company
more in service fees.

Aminuddin said the increasing sales were mostly contributed by
the agriculture sector, which booked a handsome increase of 46
percent to Rp 127 billion from Rp 87 billion in the first quarter
of 1997.

Revenue from the automotive division was boosted by increasing
prices as sales of automobiles and motorcycles dropped
significantly.

Astra's auto division, which produces Toyota, Daihatsu, Isuzu,
BMW, Peugeot and Nissan automobiles, sold 15,134 vehicles during
the first three months of this year, down 63.6 percent from
41,602 in the same period of 1997.

Sales of motorcycles dropped 49.7 percent to 96,396 vehicles
from 191,626.

Aminuddin said the management of Astra International had set
basic strategies for the company and affiliates to withstand the
impact of the crisis this year.

The strategies included pursuing healthy cash-flow and debt
management, forging strategic alliances with prospective foreign
partners, raising fresh funds through the initial public offering
of PT Astra Otoparts as well as assessing its investment
portfolio and the possibility of asset sales.

Aminuddin said that to ensure a healthy cash-flow, Astra had
instructed subsidiaries to cut all costs, both in production and
operations, improve productivity and efficiency and not to
undertake new investment or expansion, except for PT Astra Agro
Lestari. (rid)