Modern Photo to expand operation

JAKARTA (JP): PT Modern Photo Film Company, a photographic equipment manufacturer listed on the Jakarta and Surabaya stock exchanges, will cooperate with Pioneer of Japan to produce car radios for export.

Modern Photo's financial director, Achmad Fauzi Hasan, told reporters after an annual shareholders meeting yesterday that the new product will mean more efficient use of Modern's existing equipment.

"Some of the machines for the production of cameras use technology that can be used to manufacture car radios." he said.

Achmad said his company will produce 240,000 car radios this year, all of which will be bought by Pioneer.

Modern Photo will invest US$2 million, which will be taken from its 1993 profits, in the new venture.

The company made an after-tax profit of Rp 40 billion ($18.6 million) last year, which represented a profit of Rp 750 (34 U.S. cents) per share. This was a 26.5 percent jump from profits in 1992.

Achmad reported to the shareholders that half of the 1993 profit (about Rp 20 billion) will be distributed as dividends.

Because the company paid interim dividends of Rp 200 (9 U.S. cents) per share last December, it will distribute another Rp 70 (3.2 U.S. cents) per share as its final dividend.

Modern's shares have increased from 53.35 million last year to 133.38 million due to the three-for-two bonus shares issued on Jan. 19 with the aim improving the liquidity of the stock on the capital market.

The company's secretary, Michael V. Haribowo, said final dividends will be paid to shareholders on July 8.

The company's sales increased by 26.8 percent to Rp 468.3 billion in 1993, from Rp 369.4 billion in 1992.(02)