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)