Sampoerna back in black in first quarter

JAKARTA (JP): PT HM Sampoerna returned to the black again in the first quarter of this year after making a net loss of Rp 120 billion in 1998.

The publicly listed cigarettemaker reported on Friday a net profit of some Rp 200 billion (about US$27.78 million) during the first quarter.

Sampoerna's finance director, Eka Dharmayantokasih, said he was optimistic this year's earnings would offset the net loss incurred by the company in the previous year.

"This year started off very well for Sampoerna. In the first three months, the company already booked over Rp 200 billion profit," Eka said after the company's annual shareholder's meeting.

At the shareholder's meeting, Sampoerna announced that it would not pay out dividends for 1998, as the company suffered a negative net income in the year due to a fat foreign exchange loss, Eka said.

Sampoerna's foreign exchange loss plus the hedging cost for 1998 reached Rp 900 billion, based on the Rp 8,000 per U.S. dollar rate, according to Eka.

"Now at a Rp 7,000 per dollar rate, the company has about Rp 250 billion potential foreign exchange gain," Eka said.

Eka added the company currently had a stock inventory valued at about Rp 1.5 trillion, or the approximate equivalent of clove supplies adequate for one year and tobacco for the next two and a half years of operation.

The company said earlier the debt had been cut by $128 million to $244 million as of June 14, following the rescheduling of a syndicated loan and the U.S. bond buy-back program.(udi)