Bakrie & Brothers back in the black

Bakrie & Brothers back in the black

JAKARTA (JP): Publicly listed holding firm Bakrie & Brothers
returned to the black during the first quarter of this year, the
result of a decline in the company's bank interest costs and
foreign exchange losses.

The widely diversified business group said on Friday its
consolidated operating income rose 200 percent to Rp 20 billion
in the first quarter of this year from Rp 6.6 billion over the
same period last year.

"The key factors to the steep growth were the fall in the
company's interest expenses and foreign exchange losses," the
company said in a statement.

The company's interest expenses plunged 75 percent to Rp 38.9
billion in the January-March period, down from Rp 160.2 billion
in the same period last year, the company said.

The company, which suffered a foreign exchange loss of Rp 278
billion in the January-March last year, booked a gain of Rp 94.5
billion from its foreign currency management during the first
quarter of this year.

"As a result, pretax profit rose to Rp 39.8 billion during the
first quarter as compared to a loss of Rp 547.9 billion over the
same period in 2000," the company said.

During the first quarter this year, operating income from the
company's infrastructure division was Rp 800 million, compared to
a loss of Rp 8.5 billion in the same period last year.

"In the telecommunications sector, operating income rose to Rp
17.4 billion in 2000, a 141.6 percent increase from the Rp 7.2
billion in 1999," the company said.

In the agribusiness sector, however, operating income fell 11
percent to Rp 7.2 billion in 2000 from Rp 8 billion in 1999, the
company said.

The company also said overall net sales rose significantly to
Rp 394.2 billion last year, an increase of 31 percent from the Rp
300.2 billion in 1999.

"This increase was contributed to by the infrastructure,
telecommunications and trade sectors, which are not among our
'core businesses,'" the company said. (03)