KIA expects profit jump

KIA expects profit jump

JAKARTA (JP): PT Keramika Indonesia Asosiasi (KIA) of the
Ongko Group expects to double its net profits this year to around
Rp 22 billion (US$9.3 million), in line with a significant
increase in its production capacity.

KIA's president, Sugiarta Gandasaputra, told journalists here
yesterday that the drop in company's net profits, from Rp 14.5
billion in 1994 to Rp 11 billion last year, was due to spending
on several expansion projects. He also attributed the drop to a
change in KIA's accounting system, which required the company to
amortize costs of initial public offerings within five years,
instead of the 10 years previously allowed.

"We will increase the production of wall tiles from last
year's 2.3 million square meters to 6 million square meters this
year and floor tiles from 1.7 million square meters to 5.8
million square meters," Sugiarta said.

He estimated that the company's net sales will reach Rp 155
billion this year, as compared to Rp 100 billion last year and Rp
103 billion in 1994.

"In line with the decline of construction projects in the
country this year, the company will try to increase exports,
besides improving its retail sales domestically," he said.

Meanwhile, KIA's marketing director, Johny Katio, said that
retails accounted for about 70 percent of the company's total
sales last year. The remaining 30 percent came from sales to
property projects. (alo)