Cibinong books loss due to forex debt

Cibinong books loss due to forex debt

JAKARTA: PT Semen Cibinong, Indonesia's third biggest cement
maker by volume, said it booked a loss last year because of the
higher cost of servicing its foreign-currency debt.

The Jakarta-based company, controlled by Jona, Switzerland-
based Holcim Ltd., had a loss of Rp 533.1 billion (US$56
million), or Rp 70 a share, from a profit of Rp 174.2 billion in
2003, or Rp 23 a share, it said in a statement published in the
Bisnis Indonesia newspaper. It had a foreign exchange loss of
Rp 407.4 billion. Sales rose to Rp 2.37 trillion from Rp 2.24
trillion in 2003.

The rupiah's 9.2 percent decline against the dollar last year
prompted Cibinong to book foreign-exchange losses. The company
sells most of its products to the local market, earning in
rupiah, while most of its debt is in dollars.

Last year's sales by all Indonesian cement makers, including
Cibinong's bigger rivals PT Semen Gresik and PT Indocement
Tunggal Prakarsa, rose 8 percent to 37.7 million tons. Domestic
sales increased by 9.1 percent to 30 million tons, Semen Gresik
said on Jan. 17, citing figures from the Indonesian Cement
Association.-- Bloomberg