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)