Indonesia's Sampoerna earnings soars to Rp 887b

Indonesia's Sampoerna earnings soars to Rp 887b

JAKARTA: Cigarette producer PT HM Sampoerna said Thursday its
net profit for the first six months of this year jumped to Rp
887.92 billion (US$95.5 billion) from Rp 249.89 billion.

It attributed the huge jump in net profit to gains from a new
accounting treatment at Rp 521.82 billion and the increase in
sales.

The company said it will provide an explanation for the new
accounting treatment to the public Friday.

Its sales rose 18 percent to Rp 7.591 trillion from Rp 6.420
trillion during the same period last year. Sampoerna didn't
provide comments for its performance.

Shares in Sampoerna closed up 2 percent, or Rp 75, to Rp 3,575
Thursday. -- Dow Jones

Matsushita, Toshiba to create TV tube maker

TOKYO: Japanese consumer electronics giants Toshiba Corp. and
Matsushita Electric Industrial Co. Ltd. said Thursday they would
tie up to create the world's third largest maker of television
cathode ray tubes (CRTs).

The firm, to be established in January, would have some 16,000
employees worldwide and aims for combined sales of 270 billion
yen (US$2.2 billion) in the current financial year to March 2003.

The companies had already set up two joint ventures to make
displays used in such items as televisions and computers this
April, one to procure parts for CRTs and the other to produce and
sell liquid crystal displays (LCDs).

The latest tie up deepens their partnership and seeks to
challenge the market dominance by South Korean players LG Philips
and Samsung, which rank one and two in CRT production.

The joint venture will capture a 13 percent global market
share, compared to 24 for LG Philips and 15 for Samsung, based on
last year's results, Fukagawa said. -- AFP

Nokia sees 10-15 percent growth

HELSINKI: Annual sales of hand-held telephones should grow by
10-15 percent over the next few years, a senior executive with
Finnish telecommunications equipment maker Nokia said Thursday.

Kari-Pekka Wilska, president of Nokia Americas, told an
investment conference in the United States organized by Banc of
America Securities that his projection was based on the current
average replacement cycle of 2.5 years.

A text of his remarks was received here.

"Replacement cycle is the big feature for this (10-15 percent
growth), if the cycle shortens, it will drive the growth further
up," Wilska said, adding that global handset penetration should
reach 1.5 billion units in 2005.

He reiterated Nokia's target of reaching more than 40 percent
of market share, noting that growing average selling prices were
driving Nokia's growth at the moment. -- AFP

SingTel launches wireless broadband Internet

SINGAPORE: Singapore Telecommunications on Thursday launched a
wireless broadband Internet service accessible at more than 100
centers throughout the island.

The system provides customers using a notebook computer or
handheld device to gain wireless access to the Internet at
broadband speeds.

"We are committed to making wireless data technology readily
available," SingTel vice president for consumer products Hui Weng
Cheong said in a statement.

"SingTel will have at least 150 wireless surf zones by the end
of the year. We will also offer wireless local area network
infrastructure to other operators and Internet service providers
on a wholesale basis."

The surf zones have been set up in various popular cafes and
fastfood restaurants, as well as hotels and clubs. -- AFP

Japan's ANA halts fare cuts after monopoly fears raised

TOKYO: Japan's number two airline All Nippon Airways (ANA)
said Thursday it will halt fare cuts on three routes after the
nation's fair trade watchdog warned the reductions unfairly
harmed new entrants.

The move was seen as a victory for the nation's smaller
carriers, which face tough competition in an industry dominated
by three main players.

The Fair Trade Commission (FTC) said fare cuts of more than 20
percent on routes to the southern Kyushu region by ANA, Japan
Airlines (JAL) and Japan Air System (JAS) may have broken the
law.

The carrier said it would raise fares by up to 4,000 yen
(US$32.50) on routes from Tokyo's Haneda airport to Fukuoka,
Miyazaki and Kagoshima starting in December. -- AFP

Dresdner Bank to cut 1,000-1,200 jobs

FRANKFURT: Dresdner Bank, the banking arm of insurance giant
Allianz, reiterated Thursday that it planned to cut 2,700-3,000
jobs as part of a cost-cutting program and provided details for
the first time about where the jobs were likely to be axed.

The largest proportion of the cuts, around 1,000-1,200, were
set to be made at its investment banking unit, Dresdner Kleinwort
Wasserstein, the bank revealed in a statement.

The headcount reduction, already announced in August, is part
of a program to reduce costs by some 700 million euros (US$686
million). -- AFP

Matsushita to cut US$2.4b trimming suppliers

TOKYO: Japanese electronics giant Matsushita Electric
Industrial Co. Ltd. said Thursday it would save 300 billion yen
(US$2.4 billion) a year by March 2004 by slashing the number of
its suppliers.

The company said it plans to trim the number of firms
supplying its 10 domestic group companies with steel, resins and
electric parts in half to 3,000 by next March, then to 2,000 by
March 2004, among other moves.

"Through these actions, along with streamlining of our
management structure, we can expect a 300 billion yen cost
reduction," said Matsushita spokesman Yasuhiro Fukagawa.

The cost savings comes in part from an "increase in
procurement from overseas countries plus a reduction of
inventories," Fukagawa said. -- AFP