Hexindo upbeat on meeting profit target

JAKARTA (JP): Publicly listed heavy equipment supplier PT Hexindo Adiperkasa is upbeat that its this year's net profit will increase by about 10 percent to Rp 33.3 billion (US$2.94 million) as targeted despite the sluggish sales during the January to March period.

Company president Rustam Effendi said on Tuesday that although there was a significant drop during the first three months, its total sales were expected to increase by about 5 percent to Rp 413 billion ($36.5 million) in 2001.

"We're still optimistic we can achieve our target this year, although we realize our first quarter results show a contraction," he told reporters after the annual and extraordinary shareholders general meetings.

Its sales plunged by 24 percent to Rp 61 billion in the January to March period from Rp 80.8 billion in the same period last year. As a result, net profits dropped 6 percent to Rp 10.9 billion from Rp 11.6 billion.

Rustam said the company partly attributed the decline during the first three months to the surge of its operating cost.

However, he said, the company's performance had been more positive in the second quarter due to some new sales contracts awarded to the company.

He said, for example, Hexindo secured this month a $25 million-contract to sell heavy equipments to a mining company which operates in Sumatra.

"The trend usually goes this way...slow in the first quarter then faster in the next periods," he added.

In the meeting, the shareholders approved the company's executive plan to pay a dividend of Rp 40 per share for 2000.

The shareholders also appointed Kardinal A. Karim as independent commissioner, a new post in the company.

At present, Hexindo, which was established in 1988, has 18 branches in Jakarta; Surabaya; Medan, Pekanbaru and Perawang in the Riau province; Padang, Jambi, Tanjung Enim in South Sumatra; Bandar Lampung, Pontianak, Balikpapan, Banjarmasin, Samarinda, Sangatta in East Kalimantan; Makassar; and Palu.

Hitachi Construction Machinery Co. Ltd., Japan, holds a 40.02 percent stake in Hexindo, while Itochu Corporation Japan has a 22.55 percent stake in the company and PT Hexindo Adiperwira has a 21.81 percent stake.

The remaining shares are held by Hitachi Construction Machinery Pte. Ltd., Singapore, 5.07 percent and the public, 10.55 percent.(05)P