Astra sees 20% rise in net profit

Leony Aurora, The Jakarta Post, Jakarta

Publicly listed automotive giant PT Astra International saw a 20 percent surge in net profit in the first 11 months of 2004 to Rp 4.92 trillion (about US$535 million) from Rp 4.1 trillion in the same period the previous year.

In a statement sent to the Jakarta Stock Exchange, Astra said that up to Nov. 30 last year, unaudited revenue of the holding company and its subsidiaries shot up 36 percent due to stronger car and motorcycle sales.

The January-November period reaped Rp 39.78 trillion, while the company recorded only Rp 29.16 trillion in revenue in the same period of 2003.

With lower interest and easier procedures to apply for credit to buy cars and motorcycles, automotive companies have been enjoying hefty profits in recent years.

In 2004, Astra sold a total of 211,970 cars, some 44 percent higher than the 2003 figure of 147,074 units. The company's whole-year net profit in 2003 stood at Rp 4.4 trillion, with sales at Rp 31.5 trillion.

Back in 2003, the company's market share in the automotive industry stood at 37.7 percent, much lower than what it controls at present at 45 percent. The company has projected an increase of 10 percent in car sales this year to maintain its strong hold.

Overall growth from all its subsidiaries is estimated to reach 15 percent this year.

Astra has over 120 subsidiaries, including plantation company PT Astra Agro Lestari and component maker PT Astra Ottoparts. More than two-fifths of the company's shares is owned by Singapore's Cycle and Carriage.

Some $25 million of capital expenditure has been earmarked for this year, mostly to expand the capacity of its car and motorcycle assembly plants.