Mulia Industrindo expects 94% profit rise

JAKARTA (JP): PT Mulia Industrindo, a publicly-listed producer of ceramic tiles and glass products expects to book Rp 130 billion (US$55 million) in net profits this year, 94 percent above its 1995s figure of Rp 67 billion.

"The expected profit is 16 percent higher than our previous projection of Rp 112 billion. We revised the earnings projection because we are now optimistic that several new production units will operate ahead of schedule," a director of the company, Hendra Heryadi Widjonarko, announced after an annual general shareholders meeting here yesterday.

Hendra said that the second unit of its float glass plant, which was originally scheduled to operate in April this year, started commercial production at the end of last year, with an annual production capacity of 216,000 tons.

"The operation of the second float glass unit increased the combined production capacity of glass products to 540,000 ton per annum," the company's president, Eka Tjandranegara, said.

Another project, according to Hendra, is the second unit of wall ceramic tiles which will operate in July, with a production capacity of nine million square meters per annum.

"In September, the third unit of floor ceramic tiles will commence commercial production with an annual capacity of 10 million square meters," Hendra added.

He said the company's total sales are estimated to increase by 73 percent to Rp 567 billion by optimally utilizing the extended production capacity of both glass products and ceramic tiles.

Hendra said that the capacity of the company's glass products including glass containers and glass blocks will become 43 million square meters this year.

Mulia's revenues, according to its 1995 annual report, increased by 39 percent from Rp 234.8 billion in 1994 to Rp 327.5 billion last year, while its net profits soared by 78 percent to Rp 67 billion from Rp 37 billion.

Eka said that for the first quarter this year, the company booked Rp 59 billion in net sales (as compared to Rp 11.2 billion in the same period last year), Rp 32.4 billion in operating income (Rp 17.4 billion) and Rp 22.9 billion in net profits (Rp 10.7 billion).

Eka also explained that the company's shareholders gave approval for a proposed rights issue, the second for the company, to raise funds of about Rp 321.3 billion late this month.

"The total proceeds will be used to finance our expansion projects, including the planned third float glass plant which will produce reflective and safety glass, the fourth plant of floor tiles, and the third plant of glass containers," Eka said.

Another proposal approved by the shareholders is the 1995 final dividends.

"We will pay Rp 42 per share dividends, totaling Rp 19.8 billion or 29 percent of the 1995 net profits," Eka added. (alo)