Semen Gresik books 30% profit raise

Semen Gresik books 30% profit raise

JAKARTA: Indonesia's largest cement maker PT Semen Gresik recorded a 30 percent increase in its 2004 net profit from Rp 378 billion (US$39.79 million) a year earlier, its Chief Financial Officer Cholil Hasan said on Monday.

Its sales, meanwhile, increased 10 percent last year from Rp 5.5 trillion in 2003, Hasan said without giving figures for 2004 net profit and sales.

He expected the company's sales to increase by another 10 percent this year as it plans to raise cement prices by up to 10 percent this year.

The company currently has a 50 percent market share domestically, Hasan said.

He added the company has plans to build in 2006 a $350 million cement plant with an annual installed capacity of two million metric tons.

The company plans to issue bonds overseas by the end of this year to finance the new project. It also plans to tap the local debt market this year to refinance Rp 447 billion of bonds due this year, he said. However, he did not provide further details on the bond plans.

Mexican cement manufacturer Cemex SA has a 25.5 percent stake in the Indonesian state-owned cement company. -- Dow Jones