Sumalindo Lestari expects higher earnings

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)