Texmaco, Polysindo report big losses

JAKARTA (JP): Publicly listed PT Texmaco Perkasa Engineering, PT Polysindo Eka Perkasa and PT Texmaco Jaya reported to their shareholders here on Thursday huge losses for last year due to sharp declines in sales and the depreciation of the rupiah.

G. Munusamy, who acts as a commissioner at the three companies, said after their annual shareholders and extraordinary shareholders meetings that Texmaco Perkasa suffered a 260.98 percent decline in net sales to Rp 203 billion (US$24.16 million) last year.

He added that the company booked a net loss of Rp 674.9 billion, compared to a Rp 106.7 billion loss in 1998.

"The losses were caused mainly by the steep rupiah depreciation and the steep rise in interest costs," Munusamy said.

He said that Polysindo also booked a net loss of Rp 1.95 trillion last year due to a sharp fall in sales revenues, punitive interest costs and depreciation of the rupiah.

Munusamy added that auditors refused to give an opinion on Polysindo's financial reports in view of the company's complex problems.

Texmaco Jaya, he said, booked a net loss of Rp 186.6 billion, compared to a loss of Rp 24.6 billion in 1998, due to a decline of Rp 617 billion in its textile and garment sales to Rp 850 billion from Rp 1.47 trillion in 1998.

The losses, Munusamy added, were also caused by high interest costs and foreign exchange losses as a result of the depreciation of the rupiah.

"Both Polysindo and Texmaco Perkasa have appointed Deloitte Touche Tohmatsu as an independent consultant for their restructuring," Munusamy said.