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)