Lonsum's net profit down 5%

Lonsum's net profit down 5%

JAKARTA (JP): PT PP London Sumatra Indonesia (Lonsum), a
publicly listed plantation firm, reported yesterday a 5 percent
decrease in net profit to Rp 76.62 billion (US$9.6 million) in
1997 over the previous year.

The company said in a statement yesterday that the decline
resulted from a 791 percent increase in its nonoperating
expenses, including charges and provisions for foreign exchange
losses, which totaled Rp 75.67 billion in 1997.

"Although the financial position of the company suffered in
the wake of Indonesia's turmoil, bottom line results were only
marginally lower than those achieved in 1996," Lonsum's acting
president Muhammad Akib said.

The company booked a 14 percent increase in total sales to Rp
236.87 billion in 1997, of which Rp 130.52 billion was from crude
palm oil sales and Rp 60.59 billion from rubber sales.

Lonsum, established in 1906 in North Sumatra and listed on the
Jakarta Stock Exchange in 1996, is involved in the oil palm,
rubber, tea and coffee sectors. (rid)