Forex losses, high rates burden Astra

JAKARTA (JP): Publicly-listed automotive giant Astra International has reported a consolidated net loss of Rp 2.4 trillion (about US$303 million) in 1998, a sharp increase from Rp 278.7 billion losses in the previous year.

The massive deficit resulted mainly from sharp increases in the company's foreign exchange loss, interest expense and other financing charges which together totaled (net) Rp 3.49 trillion, up from Rp 1.66 trillion in 1997.

The company's total revenue declined to Rp 11.29 trillion from Rp 15.9 trillion. Revenue generated in 1998 comprised Rp 10.21 trillion from its automotive and nonfinancial business groups, and Rp 1.08 trillion from its financial business group.

Astra's financial business group includes a bank and a finance company.

The company's automotive business unit generated Rp 7.09 trillion in net revenues, down from Rp 12.25 trillion the previous year. Its plantation unit contributed Rp 853.75 billion, up from Rp 458.99 billion the year before.

Astra's revenues from information technology and consumer goods remained stagnant at Rp 1.2 trillion, from heavy equipment declined to Rp 157.9 billion from Rp 173.58 billion and wood- based industry (new business) Rp 766.45 billion.

Meanwhile, its revenue from financial services declined by Rp 750 billion to Rp 1.08 trillion, but expenses also declined by Rp 356 billion to Rp 1.252 trillion.

Astra's total assets fell Rp 6.85 trillion to Rp 22.32 trillion, due to a huge decrease in the company's receivables within the financial business group.

Net loss per share widened to Rp 1,047 from Rp 120 the previous year.

The company said last week that most of its creditors had approved its final debt restructuring program, under which the payment of foreign debt totaling $1 billion will be rescheduled over seven years. (udi)