Cementmaker loses Rp 14b in 2003

Cement maker PT Semen Cibinong, a subsidiary of Swiss-based Holcim Ltd., recorded a loss of Rp 14 billion (US$1.5 million) last year due in part to a decline in exports.

Other factors that caused the losses were the increased costs associated with improved employee benefits, in-process projects and long overdue maintenance costs, the company said in a statement announcing the results after a shareholders' meeting on Monday.

"The main problem was an ability to increase prices in line with general cost increases due to the ... industry's extreme competition," the company said in a statement.

The country's third largest cement maker booked a net income of Rp 174 billion, primarily due to foreign exchange gain.

Total volume of cement sales slightly declined to 6.04 million tons in 2003, from 6.07 million tons in 2002. Revenue rose by 13.2 percent to Rp 2.24 trillion, from Rp 1.97 trillion, while EBITDA (earnings before interest, tax, depreciation and amortization) rose by 58.46 percent to Rp 393 billion from Rp 248 billion.

The shareholders also agreed on the replacement of Thomas Ashley Clough by Timothy Mackay as president director and Jeremy C.R. Maycock by Paul Hugentobler as president commissioner. Commissioner Erry Ryana Hardjapamekas was replaced by Kemal Stamboel and director Djoko Hardjono by Novita Primadewi. --JP