Mulia Industrindo expects 94% profit rise

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)