Eratex's profit declines

Eratex's profit declines

JAKARTA (JP): PT Eratex Djaja Limited, a publicly listed
clothing and textile company, last year made a profit of Rp 1.9
billion (US$778,050), far lower than 1995's profit of Rp 3.1
billion, an executive said yesterday.

Eratex' president Julian W. Wong said here that the 37.5
percent decline was caused by substantial increases in cotton
prices and labor costs.

He said that in 1996, the company's wages bill increased 26
percent.

Wong said the company's profit would increase 25 percent this
year because cotton prices might go down while labor costs would
not increase at last year's rate.

The company's sales revenue increased 27.3 percent to Rp 130.8
billion in 1996, from Rp 102.7 billion in 1995, he said.

Wong said Eratex would set up a new factory under joint
venture arrangement with Freshtex of Germany in 1998 to raise its
production capacity 30 percent from 400,000 items a month at
present.

Yesterday's meeting approved the management's proposal to
distribute a Rp 982.36 million dividend. (13)