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)