Cementmaker loses Rp 14b in 2003

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