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)