Indocement's profit down by 11.2 percent

Indocement's profit down by 11.2 percent

JAKARTA (JP): PT Indocement Tunggal Prakarsa's consolidated
net profit dropped by 11.2 percent in the first quarter of this
year to Rp 89.2 billion (US$37.2 million) from Rp 100.5 billion
in the same period last year.

The company announced yesterday that its annualized earning
per share for the three-month period was Rp 148.

It said its net revenue increased by 10.7 percent to Rp 1.1
trillion in the Jan to March period, while gross profit rose by
7.6 percent to Rp 397.3 billion.

The company said 59.2 percent of its profit came from its food
operations through its subsidiaries Indofood and Bogasari, and
40.3 percent from cement operation through Indocement.

The company said the profit margin of its cement operation
declined 43.8 percent from 46.5 percent.

The group's president, Sudwikatmono, attributed the drop in
the profit margin to an increase in production costs and a drop
in production volume.

He said the production cost increase was also attributable to
the kiln and cooler modification to its Plant-7, which started
operation in February. "In addition, the test firing and
commissioning of our new Plant-10 increased the power cost," he
said.

But he said the modification to Plant-7 and stable operation
of Plant-10 should improve efficiency and reduce production
costs.

"We also realize that the first quarter of this year is a low
season for cement operation due to the fasting month, Lebaran,
Christmas and New Year holidays," said Sudwikatmono.

He was optimistic that his company would improve its
performance in the second quarter.

He said Indofood's recent acquisition of 80 percent of six
companies of the Salim Group, should in the long run, enhance the
group's overall profitability. (bnt)