SUCACO expected to recover this year

JAKARTA (JP): Publicly listed PT Supreme Cable Manufacturing Corporation (SUCACO) said yesterday its net profit would recover this year after a sharp drop last year.

The company's president, Elly Soepono, predicted this year's net profit would surge to Rp 20 billion (US$8.20 million) after a 87 percent drop to Rp 2.08 billion last year.

Elly said the high profit projection was in line with an expected increase in the company's sales of cables and related products.

"We expect our sales to reach Rp 396 billion this year from Rp 321.5 billion last year," Elly said after the company's shareholder meeting.

SUCACO makes power and telephone cables, enamel red wire, and melamine sheets.

The company had to stop production for three months early last year when floods hit its West Jakarta plant. The floods cost the company Rp 10.93 billion.

But business returned to normal in the second half of last year when it made a Rp 13.02 billion consolidated net profit.

Consolidated net operating profit dropped from Rp 38.53 million in 1995 to Rp 10.603 million last year, while sales fell 22.7 percent to Rp 321.50.

The company sells most of its products to state telecommunication company PT Telkom Indonesia and state electricity company PLN.

Telephone cable sales to Telkom rose 27.6 percent from Rp 103.7 to Rp 132.4 billion, while the power cable sales to PLN dropped 85 percent to Rp 11 million.

She said SUCACO refused to say how much PT Telkom's orders for this year were worth but said telephone cable orders would rise this year.

The company had also expanded its network with two foreign companies to diversify its operations, she said.

Last year SUCACO set up joint ventures with Japanese decorative melamine products maker Nihon Decoluxe, and with French electrical goods maker Legrand.

Elly said Supreme Decolux, the joint venture with Nihon, had spend about Rp 42 billion setting up a decorative melamine manufacturing plant.

"The venture started production last February with a capacity of 32,000 sheets of melamine a month," she said.

She said SUCACO owned 70 percent of the joint venture, which has paid-up capital of Rp 10.5 billion, while Nihon owned the rest.

Nihon Decoluxe products would be sold domestically and in Japan, she said.

Elly said the joint venture with Legrand would be set up later this year.

The joint venture, with a paid-up capital of US$5 million, would set up a $10 million plant to make low-voltage electrical goods.

Legrand will own 70 percent of the venture.

SUCACO is listed on the Jakarta Stock Exchange and will pay a Rp 100 dividend for the 1996 financial year.

The company plans to raise its authorized capital from Rp 225 billion to Rp 500 billion this year, she said. (das)