Modern Photo to expand operation

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)