PT Astra expects to book Rp 627 billion net profit

PT Astra expects to book Rp 627 billion net profit

JAKARTA (JP): Indonesia's biggest carmaker PT Astra
International has targeted a net profit of Rp 627 billion (US$257
million) this year, a 34 percent increase over last year.

Astra's Finance Director Rini M. Soewandi said here yesterday
that an expected robust growth in automotive sales would enable
her company to meet the profit target.

"Our net profits in the first quarter are already Rp 119.83
billion, up 63.12 percent from a year earlier," Rini said after
the company's general and extraordinary shareholder's meetings.

In the first quarter its total sales rose 9.14 percent to Rp
3.48 trillion, from Rp 3.18 trillion in the same period last
year.

"Our new Kijang is well accepted on local and foreign markets.
And we will increase the production of our Honda motorbikes due
to an increase in demand," she said.

At the meetings, shareholders approved the management's
proposal to split the nominal value of its shares from Rp 1,000
(41.67 US cents) to Rp 500.

Shareholders also approved the proposal to distribute a
dividend of Rp 120 per share.

Rini said her company's automotive businesses would remain the
largest source of earnings this year.

Publicly listed PT Astra International launched a new model
Kijang van in January with 45.80 percent local content.

The new van comes in 20 different models with a range of body
styles, engines and transmissions.

Its off the road price ranges from Rp 27.05 million to Rp
43.4 million (about US$18,000).

She said PT Toyota Astra Motor, a subsidiary of Astra
International, increased the new Kijang production to 7,800
vehicles last month to cope with the growing demand, but the
waiting list of buyers was still very long.

She said this year her company would produce 75,000 Kijang
vans, of which 1,370 would be exported to Brunei Darussalam,
Papua New Guinea and the South Pacific Islands.

Astra expects its Honda motorbike sales to reach one million
this year, up almost 53 percent from last year.

Astra International's chief commissioner Muhammad "Bob" Hasan
said his company's car sales had dropped in the first nine months
last year after the government announced its controversial
national car policy.

Under the policy, the government allows PT Timor Putra
Nasional to produce the national car, a 1,500cc-engine Timor
sedan, with tax and tariff exemptions.

PT Timor Putra is controlled by Hutama Mandala Putra, the
youngest son of President Soeharto.

Astra's car sales last year dropped to 160,563 vehicles, from
206,833 vehicles in 1995, causing its market share to decrease to
48.4 percent from 54.6 percent.

"We expect a strong growth this year. As long as our economy
grows at a high level the demand for cars will continue to
strengthen," he said.

He said many buyers have to wait until September for a new
Kijang as Astra cannot meet the strong demand. (bnt)