Expansion program boosts PT Polysindo's sales

JAKARTA (JP): PT Polysindo Eka Perkasa, a publicly listed polyester producer, reported a 52 percent year-on-year increase in net sales for this year's first nine months to Rp 1.56 trillion (US$445 million) from Rp 1.03 trillion.

According to the company's (unaudited) consolidated financial report, operations income rose 61 percent from Jan. to Sept. to Rp 457.4 billion from Rp 283.9 billion in the first nine months of 1996.

The company's net income rose to Rp 130.1 billion from Rp 127.9 billion in the same period.

The company said Thursday that the rapid sales growth was due to an increase in volume from recently completed expansions in polymer, polyester fiber and fabrics.

Despite weak polyester prices this year, Polysindo posted an improvement in its gross profit margins from 32 percent to 34 percent year-on-year.

"This was due to increased sales of specialty products and added levels of vertical integration that have helped insulate the company from price fluctuations," Anastasia Vrachnos, director of investors relations said.

"The third quarter results were in line with expectations," she said.

Polysindo, one of the country's major polyester producers, is making steady progress with a recently announced expansion program expected to boost exports.

The company is adding yarn capacity and differential product lines such as coated fabrics which are targeted for the export markets of Europe, the United States and Japan.

"With start up of several specialty products expected in 1998, we have targeted a doubling of our exports from 16 percent to 35 percent of total sales by the end of 1998," Anastasia said.

Polysindo, the Texmaco Group's flagship, makes products which include PTA, polymer, polyester chips, staple fiber, filament yarn and finished fabrics. (hen)