PT Selamat Sempurna posts US$6.17 million net profit

JAKARTA (JP): Publicly-listed PT Selamat Sempurna booked a net profit of Rp 14.31 billion (US$6.17 million) for the year's first nine months, a 125 percent increase over the same period last year.

Finance director Johansyah Anwar said yesterday the company's net sales were Rp 92.40 billion for the January-September period, a 24.30 percent rise over the same period last year.

Despite the increase the net sales were still lower than its 100 billion target, he said.

The company, which makes automotive parts, expects total net sales of about Rp 134 billion for 1996, he said.

He said lower sales was from a drop in car demand as people took a wait-and-see approach to the production of new cars, including Timor and Bimantara's Cakra and Nenggala, early this year.

"But we managed to minimize our production costs by seven percent. This resulted in the 126 percent increase in net profit," he said.

He said his company substituted its raw materials with cheaper ones from different sources. The company also used new machines which were more efficient.

The company's net profits are expected to increase 20 percent next year, he said, adding that his company had won a contract from four car companies to supply automotive spare parts.

He said that in October his company signed a deal with Bimantara to supply oil filters and fuel tanks. His company has also signed a letter of intent to supply air and oil filters, break pipes and fuel tanks to PT Timor Putra Nasional.

"We will also set up a joint venture with Nam Yang of South Korea to produce steering columns," he said, adding that the initial investment for the joint venture would be about US$1 million. (bnt)