Indocement reports profit

Indocement reports profit

JAKARTA : Indonesia's second largest cement producer, PT Indocement Tunggal Prakarsa, swung to net profit in the first half of the year from a net loss a year earlier thanks to unrealized foreign exchange gains.

Indocement said it booked a net profit of Rp 878.87 billion in the six months ended June 30, compared with a net loss of Rp 869.21 billion.

It booked foreign exchange gains of Rp 1.05 trillion, swinging from losses of Rp 1.38 trillion a year earlier due to the rupiah's appreciation against the dollar.

Indocement, like many Indonesian companies, is exposed to currency fluctuations due to its dollar-denominated debt.

The company's net revenue rose 15 percent to Rp 1.82 trillion from Rp 1.58 trillion a year earlier, but gross profit fell to Rp 538.65 billion from Rp 566.59 billion as production costs rose 27 percent to Rp 1.28 trillion from Rp 1.01 trillion.

German's Heidelberger Zement AG owns 61.7 percent of Indocement; the Indonesian government holds a 16.87 percent stake; the company's founder, the Salim Group, owns 13.47 percent; Japan's Marubeni Corp. has 1.9 percent; and the public holds 6.06 percent. --Dow Jones