Komatsu shareholders get dividend

JAKARTA (JP): The shareholders of PT Komatsu Indonesia, a publicly-listed heavy-equipment producer, yesterday approved the management's proposal to pay dividends of Rp 82 (3.5 U.S. cents) per share, totaling Rp 11 billion or 35 percent of the company's 1995 net profits.

"It is in line with our promise as stated in the prospectus for initial public offering last year," said Komatsu's vice president Budiardjo Sosrosukarto.

Budiarjo also said that the company's net profits rose 81 percent from Rp 17 billion in 1994 to Rp 31 billion last year, supported by a 38 percent increase in net sales.

Komatsu's earning per share also rose from Rp 198 in 1994 to Rp 296 last year.

"The 38 percent sales increase was due mainly to the 51 percent rise in the sales of hydraulic excavators, which reached 708 units last year as compared to only 468 units in 1994," he said.

Budiardjo said that the company's net sales reached Rp 379 billion last year, as compared to Rp 275 billion in the previous year, of which export sales accounted for Rp 74 billion or an increase of 198 percent from 1994's figures.

He said that Komatsu made its fist export of complete equipment to Thailand, Malaysia and Philippines last year.

This year the company expects to book Rp 540 billion in net sales boosted by an estimated increasing demand for heavy equipment in the construction sector, plantation and mining, as well as in the timber estate sector, Budiardjo said.

The domestic demand for heavy equipment is estimated to grow by 24 percent per annum.

He also said that the company expects an increase of 13 percent in its net profits.

Komatsu gradually increased its heavy equipment production from 1,200 units in 1994 to 1,560 last year. This year it plans to produce up to 1,800 units.

The company also produces machinery components and operates a foundry which respectively contributed 5 percent and 7 percent to its total sales last year. (08)