Gadjah Tunggal to pay dividends

Gadjah Tunggal to pay dividends

JAKARTA (JP): PT Gadjah Tunggal, a publicly-listed holding
company in tire manufacturing, will distribute cash dividends of
Rp 100 per share and a bonus share for each existing stock.

After annual and extraordinary meetings of shareholders
yesterday, the company said in a statement that the dividends and
bonus shares will be given to those listed as shareholders on
Aug. 10.

As the company's recorded shares total 396 million, the
company will pay Rp 39.6 billion for cash dividends, or 43.87
percent of its net profits.

According to its financial reports, the company's net profit
increased by 94 percent to Rp 90 billion last year from Rp 47
billion in 1993.

Mulyati Gozali, the company's financial director, noted that
the profit increase mainly resulted from the high rise in last
year's sales of its products, including tires for motorcycles and
cars as well as tire fabrics and cords.

The company recorded total sales of Rp 487 billion last year,
up 34 percent from Rp 365 billion in 1993. Of last year's total
sales revenues, 79 percent was collected from domestic sales and
the rest from exports.

The largest contributor to last year's revenues was the sales
of standard car tires, which delivered Rp 296 billion or 61
percent of total revenues, followed by motorcycle tires with Rp
96 billion, radial tires Rp 51 billion and Rp 44 billion from
tire cords.

Established in 1951, Gadjah Tunggal in 1991 acquired PT
Andayani Megah which produces tire fabrics, and last year it
established PT Filamendo Sakti, in joint venture with HICOM
Berhad of Malaysia, to produce cording for tires.

The company floated 20 million common shares on the Surabaya
and Jakarta stock exchanges in March 1991. Last year, the company
issued 198 million rights shares.

Mulyati said the funds from rights issue were used to finance
the expansion of its radial-tire production facilities, which
needed a total investment of Rp 850 billion. She added that as of
last December, the expansion project absorbed a total of Rp 271.8
billion.

"After the completion of the expansion project, our annual
production capacity will increase five times to 30,000 radial
tires from the current level of 6,000," Mulyati said. (rid)