Sunday, 25 May 2014

ASTRA MAKE NET PROFIT OF RP4.7 TRILLION IN QUARTER I 2014



PT Astra International Tbk and its subsidiary companies announced today that company’s performance in quarter I 2014 was showing progress compared to same period of 2013.

Astra’s net profit of March 2014 came to Rp49.8 trillion, an increase of 7% against same period of 2013. Meanwhile net profit was posted at Rp4.7 trillion, an increase of 10% against the revious Rp4.3 trillion. Net profit per share was 10% to become Rp117 per share.

Net value of Astra’s asset was Rp2,197 per share on March 31, 2014, posting increase of 6% against 2013 at Rp2,073. Price competition in the automotive market had reduced Astra’s income in spite of increased sales by volume. Meanwhile performance in the agri-business sector was posting increase due to increase CPO price, while the mining sector Astra managed to increase production volume of coal.

“We predicted increasing competition in the automotive market and low price of coal would continue through 2014,” President Director of PT Astra International Tbk Prijono Sugiarto disclosed in his presse release to BusinessNews on Monday [28/4] night.

Activities of the Astra group was focused on 6 core business, i.e. automotive, financial service, heavy equipments and minery, agro business infrastructure and logistics, and IT business specified as follows:

The Automotive Division

Net profit of the Automotive Division dropped by 5% to become Rp2 trillion. In spite of high demand for automotive through quarter I of 2014 discount was in the automotive market had its effect on Astra’s net profit. Contribution of net profit by the component group was also posting downturn, following reduced share ownership of Astra Otoparts from 95.7% to 80% in quarter 2 2013.

Total national automotive sales increased by 11% to 329,000 units. Total car sales of Astra Group: Toyota, Daihatsu, Isuzu, UD trucks and Peugeot posted increase of 173,000 units, with market share increasing by 52% to 53% in 2013. Through quarter I/2014 Astra launched 4 new models and 5 facelift models.

Meanwhile national motorcycle sales increased by 1% to become 2 million units. Sales of Honda motorcycles produced by PT AHM increased by 4% to become 1.3 million units with increased market share from 62% to 63%. Through quarter I/2014 AHM launched 7 facelift models. PT Astra Otopars Tbk [AOP] a producer of car components posted increase of sales volume although net profit was posting downturn to Rp266 billion – the reduced net profit was on account of downturn in manufacturing margin.

Financial Service Division

Net profit of the Financial Service Division posted downturn of 5% to become Rp981 billion. High growth from portofolio of the financial service, including therein Federal International Finance, PermataBank and Astra Credit Companies was slightly reduced due to low performance of Asuransi Astra Buana.

Total financing through Astra Automotive Financing Agency increased by 11% to Rp15 trillion, including through joint financing resources. Meanwhile total credit extended through financing of heavy equipment posted downturn of 29% to become Rp0.9 trillion due to downturn of sales of heavy equipments. PT bank Permata Tbk whose 44.56% of shares was owned by the company, booked net profit of Rp367 billion, an increase of 3%.

PT Asuransi Astra Buana [AAB], a subsidiary company in insurance posted downturn of net profit. High growth of gross premium income was suppressed by lessened contribution from investment income due to profit in quarter I/ 2013 orginating from sales of Reksadana.

Heavy Equipment and Minery Division

Net profit of Heavy Equipment and Minery Division increased by 39% to become Rp959 billion. PT United Tractors Tbk [UT] whose 59.5% of shares was owned by the company reported net income of 12% and net profit of 40% to become Rp1.6 trillion.

Net profit of construction machines segment rose by 6% caused by increase of income from spareparts and after sales service in spite of downturn in sales of Komatsu heavy equipment amounting to 5% to become 1,211 units.

PT Pamapersada Nusantara [PAMA], subsidiary company of UT in coal mining contractor was advantaged by increased volume of coal. PAMA posted income increase of 14% as contract in coal production increased by 28% to become 31 million tons, with overburden removal flat at 201 million tons.

UT’s subsidiary company in mining reported increase of net income of 20% caused by increase of coal sales at 36% i.e. 1.6 million tons in spite of downturn in coal sales by 9%. Increase of fuel cost also reduced gross profit margin. United Tractors and their subsidiary companies possessed 9 coal mines with total coal reserves of 409 million tons.

The Agro-Business Division

Net profit of the Agro business division increased by 120% to become Rp625 billion. PT Astra Agro Lestari Tbk [AAL] whose 79.7% shares were owned by the company, reported increase of net profit by 120% to become Rp785 billion. Average CPO price increased by Rp8,949 kg, while sales of CPO posted downturn of 18% to become 314,000 tons, as CPO factory in West Sulawesi started operations.

Infra Structure and Logistics Division

Net profit of the Infra Structure and Logistics Division dropped by 30% to become Rp87 billion. PT Marga Mandala Sakti [MMS] a toll road operator managing Tangerang-Merak section of 72.km long, whose 73.3% of shares was owned by the company, posted increased of traffic flow by 4% to become 10 million vehicles with tariff increase of 14%.

The Kertosono-Mojokerto toll road section of 40.5 km long whose 95% of shares was owned by Astra was being acquired by end of 2011 and was in the process of construction and was due for completion by end of 2014, awaiting for land clearing procedure.  Together with Kunciran-Serpong of 11.2 km long whose 40% of shares was owned by Astratel, total toll road owned by Astra was 124.2 km.

PT Serasi Autoraya [SERA] was posting increase of income, although the total contract of car rental in rental business of TRAC slumped by 5% to become 30,000 units. However the increase was suppressed by operational cost so net profit dropped by 32% to become Rp40 billion.

Technology and Information Division

Net profit of Technology and Information Division rose by 26% to become Rp26 billion. PT Astra Graphia Tbk [AG] as a company specializing in IT business and sole agent of Fuji Xerox Indonesia, whose 76.9% of shares was owned by the company, posted net profit of Rp33 billion, an increase of 26%. (SS)

Business New - May 2, 2014

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