Polysindo records 43% increase in revenue

Polysindo records 43% increase in revenue

JAKARTA (JP): Publicly listed PT Polysindo Eka Perkasa,
Indonesia's largest polyester producer, announced yesterday
a 43 percent increase in net sales revenue to Rp 460.6 billion
(US$190 million) for the first quarter compared to the same
period last year.

The company said its operational income rose by 21 percent to
Rp 117 billion, generating an 18 percent increase in net income
to Rp 52.2 billion in the period under review.

Polysindo attributed the rapid sales growth to increasing
volume coming on-line as it completed its $645 million expansion
program.

"The quarter-over-quarter results are important for a company
growing as quickly as ours. Our results are in line with what we
told our investors," General Manager of Finance R. Gururajan
said.

Gururajan said Polysindo had promised continued quarter-over-
quarter earnings growth would come from its expansion program
which significantly increased its capacity in polymer, polyester
fiber and fabrics and generated a new 340,000 ton capacity in
purified terephthalic acid manufacturing.

"The full upside of this expansion will be in 1998," he said.

Polysindo, the Texmaco group's flagship, is a leading
integrated polyester producer whose products include polymer,
polyester chips, staple fiber, filament yarn and finished
fabrics.

Separately, the Texmaco group said its subsidiary, publicly
listed PT Texmaco Perkasa Engineering, posted a 113 percent rise
in sales to Rp 115 billion ($47.6 million) for the first quarter.

Texmaco Perkasa's income from operations rose by 122 percent
to Rp 36.3 billion and its net income increased by 93 percent to
Rp 17.5 billion.

"Our earnings per share jumped 95 percent to Rp 72 in the
first quarter," the company said.

The company attributed its sales and earnings growth to its
engineering and fabrication division which completed building a
PTA plant for PT Polysindo Eka Perkasa.

"Indonesia's future lies in developing more of its technology
and sourcing capital goods locally rather than relying on
imports," said Texmaco Perkasa's president Marimutu Sinivasan.

Sinivasan added that Texmaco Perkasa had achieved tremendous
success delivering a high-tech plant to Polysindo and "we are
well positioned to provide turnkey solutions to other companies
in Indonesia and other ASEAN countries".

He said Texmaco Perkasa had one of the only large factories in
Southeast Asia capable of making the specialty plant equipment
needed for high growth industries such as the chemical, steel,
cement and pulp and paper industries.

Texmaco Perkasa operates four divisions including textile
machinery, heavy engineering and fabrication, machine tools and
automotive components. (vin)