Asahimas PT: costs outpace rise in sales in 2005

Indonesian flat glass producer PT Asahimas Flat Glass said its 2005 net profit rose 2% to IDR 212.55 billion from IDR 206.79 billion a year earlier as costs increased faster than rising sales.
Asahim…

Indonesian flat glass producer PT Asahimas Flat Glass said its 2005 net profit rose 2% to IDR 212.55 billion from IDR 206.79 billion a year earlier as costs increased faster than rising sales. Asahimas said sales were up 17% to IDR 1.72 trillion in 2005 from IDR 1.46 trillion a year earlier. However, gross profit grew by just 8% to IDR 570.01 billion from IDR 527.83 billion the previous year as the cost of goods sold jumped 23% to IDR 1.14 trillion, the company said. Operating profit in 2005 was slightly higher at IDR 309.55 billion against IDR 301.80 billion in 2004. In the nine months to September 2005, Asahimas reported a 47% year-on-year growth in net profit to IDR 199.54 trillion on sales of IDR 1.31 trillion. Investor relations head Rusli Pranada said in March 2006 that costs rose at a faster pace than sales after the government raised fuel prices in October 2005 by an average 126%. Higher fuel prices pushed up electricity and distribution costs, amongst others, Pranada explained. Asahimas is 43.95%-owned by Asahi Glass Co of Japan and 40.62% by PT Rodamas. The investing public holds the remaining shares.