Semen Gresik swings to profit

Semen Gresik swings to profit

JAKARTA: Indonesia's largest cement maker, PT Semen Gresik, said Thursday it booked a first-half net profit of Rp 170.38 billion (US$19.3 million), swinging from a net loss of Rp 41.39 billion a year earlier mainly due to foreign exchange gains.

Gresik said it recorded unrealized foreign exchange gains of Rp 69.80 billion in the first half of the year, compared with losses of Rp 329.87 billion a year earlier as the rupiah appreciated to Rp 8,730 as of June 30 from Rp 10,440 a year ago.

Like many Indonesian companies, Gresik is exposed to foreign currency fluctuation due to its dollar-denominated debt.

Its net sales inched up 8.6 percent to Rp 2.40 trillion, but gross profit fell to Rp 775.55 billion from Rp 846.47 billion as production costs rose to Rp 1.63 trillion from Rp 1.31 trillion.

The company didn't explain what drove production costs higher, but analysts predicted the costs would rise after the government scrapped fuel subsidies for industries in March. Dow Jones