JAKARTA: Publicly-listed cement producer PT Semen Cibinong recorded a loss of Rp 81 billion (US$9.1) million in the first half of the year, compared to a profit of Rp 67 billion in the corresponding period last year.

The company, in a statement, said its sales volume had increased to 3.1 million from 2.9 million tons, with exports being the main contributor to the increase, up from last year's 1 million tons to 1.5 million tons.

"However, this (the improved sales volume) was not matched by the financial performance," it said in a statement.

Revenue reached Rp 922 billion in the first half of the year, a slight decrease on last year's Rp 932 billion, while cost of sales increased to Rp 929 billion from Rp 824 billion, it said.

The company recorded a foreign exchange gain of Rp 880 billion due to the strengthening of the rupiah, however this had to be noted as a paper gain only, it said. --JP

Ajinomoto to expand Brazil unit

TOKYO: Japan's top seasoning firm Ajinomoto Co. said Monday it would invest US$15 million to expand production of feed-grade lysine at a plant in Brazil to meet growing demand.

Under the plan, Ajinomoto is to raise its annual output of lysine, a core product of its feed-use amino acid business, to 60,000 tons per year from 30,000 tons by the end of 2004.

"Aiming to become a global corporation in food and amino acid products from its origin in Japan, Ajinomoto is developing its business globally," the firm said in a statement.

The move, at its subsidiary Ajinomoto Biolatina Industria e Comercio Ltda., is a part of an earlier plan to increase global amino acid lysine production to 300,000 tons a year, from the current 200,000 tons, by 2005.

Ajinomoto has six production bases worldwide. --AFP

Korean Air posts $4.26m net profit

SEOUL: Korean Air Co. said Monday a rise in passenger and cargo demand saw it achieve a net profit of 51.3 billion won (US$4.26 million) in July, reversing a US$10 billion net loss a year earlier.

The national flag carrier's operating profit also rose to 64.2 billion won in July from 4.0 billion won a year earlier, Korean Air's spokesman Crimson Lee said.

He said the third quarter is traditionally the high season for airlines.

The company said it recorded a 246.7 billion won net profit in the January-July period, reversing a 356.1 billion won net loss a year earlier.

Up to 85 percent of international passenger flight seats were occupied in August, with 89 percent of seats so far reserved in September. --AFP

Cadbury, Nestle on joint bid

LONDON: European food giants Cadbury Schweppes and Nestle are considering a joint US$12.3 billion bid for the U.S. chocolate giant Hershey with the intention of splitting the company between them, the Mail on Sunday reported.

Such a deal may let Nestle escape from a veto by U.S. anti- monopoly authorities, the British newspaper said.

Cadbury Schweppes declined to comment on a similar report which appeared in Sunday's Business newspaper in London, when contacted by AFP's business wire, AFX.

On Friday Nestle's chief executive Peter Brabeck was reported as dismissing the idea of a takeover of Hershey as a "fantasy" because of anti-monopoly regulation.

Hershey dominates the U.S. chocolate-candy market, with about 43 percent share, followed by Mars, with a 27 percent share and Nestle with 12 percent. --AFP

Plunging sales worsen Daewoo woes

SEOUL: South Korea's Daewoo Motor Co. on Monday said its sales plunged 58 percent in August from a year ago amid mounting troubles caused by the suspension of production and a delayed deal with US giant General Motors Corp.

Daewoo said its sales stood at 22,952 units in August, down from 39,651 in the same month a year earlier and down 63 percent from 36,219 in July this year.

The company's domestic sales grew 19.7 percent year-on-year to 15,934 in August but exports nosedived 73.4 percent to 7,018.

In the eight months to August, Daewoo sold 81,126 vehicles, down 12.5 percent from a year ago. During the same period, its domestic sales increased 2.8 percent to 114,468 but exports plunged 20.6 percent to 166,658.

Suppliers stopped shipping parts to the embattled company until they receive money they are owed. --AFP

Toyota, Nissan to make joint car

TOKYO: Rivals Toyota Motor Corp. and Nissan Motor Co. Ltd. said Monday they would jointly develop environmentally-friendly hybrid vehicles to cut costs and benefit from each others' know- how.

"The two companies expect that this collaboration will contribute further (to) decreasing the cost of hybrid vehicle components, which should lead to boosting the sales of hybrid vehicles around the world," the two major Japanese automakers said in a statement.

Hybrid vehicles are kinder to the environment than conventional cars as they have low carbon dioxide emission and cleaner exhaust gas.

Industry leader Toyota will supply hybrid components for Nissan vehicles, under a deal that will last 10 years or more.

The first fruits of the alliance will be sold in the United States in 2006, with targeted sales of Nissan cars installed with a Toyota hybrid system set at 100,000 units within five years. --AFP

Deutsche Telekom to sell T-Online

FRANKFURT: German telecommunications giant Deutsche Telekom could decide to sell its Internet arm T-Online rather than its US mobile unit VoiceStream to help cut debt, the weekly newsmagazine Spiegel reported Monday, quoting industry experts.

Deutsche Telekom holds 82.7 percent of T-Online and based on the current share price of around 8.65 euros, that stake is worth around US$8.5 billion.

Thus, selling T-Online would be easier than divesting VoiceStream, since the latter would almost certainly involve a huge write-down of its value on Deutsche Telekom's accounts, the magazine said.

The German giant paid more than 30 billion euros for its passport into the US market, but VoiceStream is currently estimated to be worth only 10-15 billion euros. --AFP