Losses prevent PT Tifico paying dividend for 1995/1996

JAKARTA (JP): Publicly listed PT Teijin Indonesia Fiber Corporation (Tifico) will not pay a dividend for the 1995/1996 financial year because of its huge losses.

Tifico executive Henny said Thursday the polyester fiber maker had suffered a net loss of Rp 24.68 billion (US$10.45 million) for the financial year after its Rp 18.38-billion net profit for the previous year.

She said the loss was caused by rising credit costs, which rose to Rp 30.52 billion for the financial year up from Rp 26.09 billion for the previous year. It was also attributed to a bigger foreign exchange loss of Rp 28.48 billion, up from Rp 20.63 billion. And more expensive raw materials since July 1995.

Net sales had risen to Rp 397.42 billion this year, up from Rp 389.97 billion, she said after a shareholders meeting.

Tifico's gross margins had dropped sharply to Rp 18.50 billion from Rp 78.72 billion because of rising production costs.

"Tifico might still suffer around a Rp 25-billion loss next year," Henny said, adding that her company expected to book profits of Rp 4.06 billion in 1998.

Tifico, listed on the Jakarta Stock Exchange, is 65 percent owned by Teijin Limited of Japan, 13 percent by Tomen Corporation of Japan and 20.80 percent by the public.

The company can produce up to 189,000 tons of polyester fiber a year. Polyester fiber is used to make textiles. (04)