Texmaco Group posts 2.8% profit increase

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)