Astra returns to the black

The Jakarta Post, Jakarta

The publicly listed automaker PT Astra International announced Friday that it had booked a net profit of Rp 1.1 trillion (US$121 million) in the first quarter of this year from a net loss of Rp 515 billion last year on the back of higher sales and a stronger rupiah.

Astra, which is more than 30 percent owned by Singapore's Cycle & Carriage Ltd., said in a statement that net revenue in the January-March period increased 6 percent to Rp 7.43 trillion from the same period last year.

The company said that revenue from its automotive business, which accounts for 84 percent of total revenue, was up 3.1 percent to Rp 6.25 trillion from Rp 6.06 trillion

Nationwide car sales during the first quarter increased 8 percent to 73,985 units from the same period last year.

Meanwhile, Astra's car sales in the same period jumped 16 percent to 34,516 units from last year, expanding the company's local market share to 46.7 percent from 43 percent in the same period in 2001.

Astra's automotive business and balance sheet is strongly exposed to the exchange rate of the rupiah against the U.S. dollar. The stronger rupiah during the first quarter eases the company's foreign debt burden of nearly $1 billion.

The rupiah has appreciated by around 12 since the beginning of the year. The local unit ended higher Friday at Rp 9,080.

Astra said that motorcycle sales jumped by 75 percent to 315,034 from the first quarter of last year, outpacing the domestic motorcycle sales growth of 50 percent during the period.

Analysts said that with a strong after market sales network and good pricing strategy, Astra's Honda products remain a favorite among Indonesians compared to cheaper Chinese-made motorbikes.

Astra manufactures the popular Honda brand, which controlled nearly 60 percent of the local market in the first quarter.

The conglomerate added that revenue from financial business soared by 86 percent mainly due to an increase in leasing income for motorcycles. No figure for revenue from the financial operation was available.

Astra said that revenue from the agriculture division, operated by its listed unit, PT Astra Agro Lestari, jumped 78 percent to Rp 422 billion thanks to a combination of a 69 percent increase in the price of crude palm oil (CPO) and 11 percent rise in CPO production to 116,386 tons.

Shares in Astra International gained 1.8 percent in Friday trading to Rp 4,250.