Indorayon's profit surges

Indorayon's profit surges

JAKARTA (JP): The operating profit of PT Inti Indorayon Utama, a publicly listed pulp and rayon producer based in North Sumatra, increased by 1,286 percent to Rp 56.6 billion in the first quarter of this year due primarily to higher gross profits from pulp and rayon fiber sales.

The company announced yesterday that its net income increased by Rp 42.1 billion to Rp 37.6 billion for the first quarter from a net loss of Rp 4.5 billion in the same period last year.

"The increase was largely due to an increase in operating profit which was partly offset by a rise in other expenses, mainly attributable to an increase in interest expenses," noted Per Haugen, Executive Director of Indorayon.

Pulp sales increased by 101 percent to 55,140 tons in the January to March period from 27,443 tons in the same period in 1994. The average price of pulp rose 80 percent to US$772 per ton from $430.

The company's pulp production increased by 81 percent to 55,493 tons in the first quarter from 39,712 tons in the same period in 1994, the statement said.

"Our strong point is our cost competitive position and we will further strengthen our position through further integration of our pulp mill and rayon fiber plant operations," Haugen added.(hen)