Two listed firms report profit declines
Two listed firms report profit declines
JAKARTA (JP): Two companies listed on the Jakarta and Surabaya
stock exchanges reported declines in after-tax profits for their
1993 operations in the annual meetings of their shareholders here
on Tuesday.
PT Eratex Djaja Ltd., a garment manufacturer based in
Probolinggo, East Java, reported that its after-tax profit fell
by 19 percent to Rp 7.5 billion (US$3.4 million) last year from
Rp 6.08 billion in 1992. PT Clipan Finance Indonesia, a Jakarta-
based multi-financing company, said that its after-tax profit
declined by 16.4 percent to Rp 3.14 billion from Rp 3.76 billion.
Eratex President David Wan Sam Hung told shareholders that the
profit decline was caused by lower demand for textiles and
garments in the United States and European countries and
increasing tax payments.
Hung said Eratex will distribute cash dividends of Rp 90 per
share to its shareholders on July 21.
Eratex, which started operating in 1972, is 25 percent owned
by the Hong Kong-based Eastern Cotton Mills Ltd., 22.5 percent by
the Bermuda-based UniSouth Holdings Ltd. and 2.5 percent by
Limmen Investment Ltd. of Liberia. The other 50 percent is owned
by the public.
The company produces various textile products, including
Levi's garments for the San Francisco-based Levi Strauss & Co.
Sales
Hung said Eratex's sales revenues actually increased by 2.8
percent to Rp 81.17 billion last year from Rp 78.92 billion in
1992. However, the doubling of income taxes to Rp 3.04 billion
from Rp 1.54 billion and the decline in revenues from deposit
interest to Rp 5.22 billion from Rp 6.33 billion caused the
decrease in profits.
Commissioner Andy Purnomo told shareholders that demand for
textile products on the world market is expected to increase this
year, in line with improvement in the economies of industrial
countries, particularly the United States.
Eratex, which employs 5,000 workers, operates weaving machines
with 53,000 spindles and 1,000 sewing machines.
One company executive told The Jakarta Post that the
management will improve its workers' welfare this year following
a strike in April.
The president of Clipan Finance, Philippe L. Bonin, told
reporters after its shareholder meeting that the company's profit
decrease was caused mainly by a drop in revenue and a decline in
interest rates.
The company's revenues decreased by 14.6 percent to Rp 31.48
billion last year from Rp 31.54 billion in the previous year, he
said.
Bonin said the company will distribute cash dividends of Rp
102 per share to its shareholders on July 22. (09/02)