Sumalindo Lestari expects higher earnings

JAKARTA (JP): Publicly listed timber firm PT Sumalindo Lestari Jaya, a subsidiary of the country's largest automaker Astra International, expects an increase in earnings this year despite the economic crisis.

Company president Adi Resanata Somadi Halim said that rupiah's sharp fall against the American dollar was a windfall for the firm, which exported 70 percent of its products overseas last year.

The rupiah is currently hovering around 14,000 to the American dollar, compared to its precrisis level of 2,450 in July last year.

"We expect bright prospects this year because the rupiah's fall against the dollar will make earnings in rupiah much higher."

He declined to divulge projected sales and net profit targets this year.

The company's net sales reached a total of Rp 133 billion in the first quarter of this year, compared to net sales of Rp 349 billion for all of last year, he added.

He said that net profit totaled Rp 10 billion in the first three months over a substantial loss in the same period last year.

"With the rupiah remaining weak against the dollar, we will see better earnings this year."

He said the company marketed around 111,110 cubic meters of logs in 1997, 163,200 cubic meters of plywood, 7,700 cubic meters of blockboard and 120,000 cubic meters of medium density board (MDF) overseas, including to Japan, Hong Kong, South Korea, the United States and Europe.

Adi said the company -- currently 82.06 percent owned by Astra International, 9.53 percent by timber firm PT Barito Pacific Timber controlled by Prajogo Pangestu, 0.14 percent by a cooperative and 8.27 percent by the public -- would boost its export market to offset the decline in the domestic market due to dire economic situation.

He stated the firm's total foreign debt was US$30 million, which would mature in the next three years.

But he refuted reports on the firm's forest concession in Kalimantan, which was alleged to have breached forestry regulations.

"We have not received any warnings yet from the forestry ministry," he said. (aly)