Ever Shine expects 20% rise in net profit

JAKARTA (JP): PT Ever Shine Tex, a publicly listed synthetic textile and clothing manufacturer, expects a 20 percent increase in net profit this year on increased production capacity.

Ever Shine's director Erlien Lindawati Surianto said yesterday the company's net profit was likely to increase to Rp 32.64 billion (US$13.38 million) this year from Rp 27.2 billion in 1996, and its net sales to Rp 220.8 billion from Rp 184 billion.

"The rise will mainly come from increased production at our factories," Erlien said after the company's annual shareholder's meeting.

The company produces nylon, polyester, acetate and clothing. It will start operating PT Primajuli Sukses soon, she said.

Nylon yard producers PT Primajuli and PT Mingtak Niaga were bought by Ever Shine in late 1995.

The PT Primajuli factory, built with about $25 million, could produce 7,700 tons of yarn a year, she said.

She said Ever Shine's subsidiary PT Indo Yongtex Jaya was also expected to increase it's production capacity by about 20 percent this year with new machinery.

The company spent $10 million on new machinery, she said.

"With the new machinery, Indo Yongtex' will raise their production to over 20 million yards of woven fabric from 18 million yards by the end of this year," she said.

Indo Yongtex would also raise its production of knitted textiles to 4,000 tons yearly from 1,100 last year, and clothing to 360,000 items a year from 300,000 last year, she said.

At yesterday's meeting, Ever Shine's shareholders agreed on the company's proposal to distribute Rp 14.9 billion or 54.9 percent of its net profit last year as dividends. The dividends will be Rp 50 a share.

Last year, the company's net profit rose by 12.3 percent to Rp 27.2 billion from Rp 24.2 billion in 1995.

Its net sales rose by 13.2 percent to Rp 184 billion from Rp 162.5 billion in 1995, 83 percent came from textile sales.

Erlien said the company would export 40 percent of its products and sell the remaining 60 percent domestically this year.

The company planned to start operating PT Mingtak next year, she said. (das)