Mon, 26 Jun 1995

Texmaco Group posts 2.8% profit increase

JAKARTA (JP): The Texmaco Group of publicly-listed textile and textile engineering companies reported a combined net profit of Rp 108 billion (US$48.5 million) last year, 2.8 percent higher than 1993's level.

The Texmaco Group issued a statement on Saturday revealing that the largest contributor to the group's profits came from the holding company, PT Polysindo Eka Perkasa, with Rp 51.02 billion, followed by PT Texmaco Jaya with Rp 37.1 billion and PT Texmaco Perkasa Engineering with Rp 19.88 billion.

The three companies conducted their annual shareholders meeting in Karawang, West Java, where their production facilities are located, on Saturday.

The statement revealed the group would distribute 47.9 percent of last year's net profits, or Rp 51.75 billion, as cash dividends.

It said the dividend payout ratio was higher than the ratio the companies pledged during their initial public offerings.

Marimutu Sinivasan, chairman of the Texmaco Group, said the profit increase partly resulted from the increase in revenues from domestic sales of its new products, including differential shrinkage yarn, thick and thin yarn and crepe effect yarn.

The group's revenues last year grew by 31.4 percent to Rp 882 billion, of which Polysindo contributed the largest portion with Rp 484.88 billion, Texmaco Jaya Rp 314.22 billion and Texmaco Perkasa Rp 83 billion.

Marimutu said the group's total assets also grew by 42.28 percent to Rp 599 billion as of last December over December 1993.

Polysindo, which claims to be the oldest and the most fully integrated textile company in Indonesia, floated 12 million shares, which represented 30 percent of the company's total shares, on the Jakarta Stock Exchange (JSX) in March 1991.

Polysindo's main products include chips, filament yarns and fiber. The company is expanding its production facilities in Karawang to improve its annual production capacity to 180,000 tons of polyester staple fiber and 330,000 tons of polyester chips. Its current annual production level is 7,200 tons of polyester staple fiber and 50,400 tons of polyester chips.

In October 1991, Polysindo acquired Texmaco Jaya, a company engaged in weaving and fabric finishing. Texmaco Jaya followed Polysindo's step of going public by selling 20 million shares or 20 percent of its total stocks on JSX last year.

In April 1992, Polysindo acquired Texmaco Perkasa, a textile machinery manufacturer. Texmaco Perkasa then floated 84 million shares on JSX last year.

Texmaco Perkasa, which produces weaving looms, plans to diversify its business line into the automotive sector by producing automobile parts within the next two years. (rid)