Astra's operating profit rises 76%

Astra's operating profit rises 76%

JAKARTA (JP): PT Astra International more than doubled its net
operating revenues to Rp 20.2 trillion (US$2.2 billion at the
current exchange rate) in the first nine months of this year from
a year earlier and posted a 76 percent increase in its operating
profit to Rp 2.4 trillion.

But the company ended up the period under review with a net
loss of Rp 273 billion due to foreign exchange losses caused by
the sharp fall in the rupiah's exchange rate against the American
dollar, Astra Corporate Secretary Aminuddin said in a statement
on Tuesday.

Aminuddin said that although the net loss was much lower than
the Rp 702 billion loss suffered in the first six months, foreign
exchange losses and foreign exchange swap costs remained high at
Rp 1.9 trillion.

The losses, he added, were caused mainly by the weakening of
the rupiah from Rp 7,100 per dollar at the end of 1999 to Rp
8,780 at the end of September.

He stressed, however, that all major business divisions of
Astra International enjoyed robust sales growth in the period
under review.

"Our car sales more than tripled to 105,432 units or about 50
percent of the total domestic market and our automobile exports
increased by 69 percent to 36,424 units," Aminuddin said.

Its Honda motorcycle sales also expanded by 80 percent to
323,865 or 55 percent of the national motorcycle market.

He said that the latest data showed Astra's automobile sales
had increased further to 121,815 units in the first ten months
while motorcycle sales had risen to 373,273 units.

Astra is the sole agent and assembler of Toyota, Daihatsu,
Isuzu, BMW and Peugeot cars and Nissan trucks.

Aminuddin said that Astra's plantation division (mostly
producing crude palm oil) increased its sales by 32 percent and
the financial services division by 52 percent.

Aminuddin explained that different from Astra's consolidated
financial report for the first semester, the financial statement
for the third quarter no longer included its subsidiary PT
Federal Motor (the producer of Honda motorcycles).

"This is because Federal Motor was restructured in late August
under a joint venture with Honda Motor Co.," he added.

When the joint venture agreement becomes effective on Dec. 31,
PT Federal Motor will be merged with PT Honda Federal into a new
joint venture company called PT Astra Honda Motor, which will be
owned equally by Astra and Honda Motor Co.

As part of the joint venture agreement, Astra International
will transfer the distributorship of Honda motorcycles to Astra
Honda Motor for a consideration of Rp 1.12 trillion, Aminuddin
added. (vin)