Indomulti's profit up 118%

JAKARTA (JP): PT Indomulti Inti Industri, a multi-industry corporation listed on the Jakarta Stock Exchange, reported a 118 percent increase in net profits to Rp 26.7 billion (US$11.4 million) last year.

The company's net sales reached Rp 824 billion from its five business segments.

Indomulti's investor relations manager, Julyasanti, told The Jakarta Post that the net sales from its shoe division reached Rp 176 billion, textile division Rp 165 billion, packaging and printing division Rp 17.4 billion, iron sheet division Rp 229 billion and mosquito coil division Rp 237 billion.

The company's president, Franciscus Welirang, said yesterday that 1995 was a difficult year for the shoe and textile industries because production cost increases were not followed by higher sales prices.

"As a result, the profit contribution from the shoe and textile divisions was marginal," Welirang said.

"The consolidated net income, however, rose significantly as the profit growth in iron sheet and mosquito coil divisions was high enough to compensate for the setback in the shoe and textile divisions," he added.

In efforts to cut overhead in the shoe division, the company is now considering merging its three shoe factories now located in two different places in East Jakarta. (08)