PT Asahimas Flat Glass Tbk has reported net profit down 90.44% to IDR 13 billion for the 1H 2006 from IDR 136 billion in the 1H 2005. Earnings per share declined from IDR 312 to IDR 29 in the same per…
PT Asahimas Flat Glass Tbk has reported net profit down 90.44% to IDR 13 billion for the 1H 2006 from IDR 136 billion in the 1H 2005. Earnings per share declined from IDR 312 to IDR 29 in the same period. The Director of Asahimas Takashi Nomura said that the lower net profit was due to domestic sales down 30% from IDR 846 billion in the 1H 2005. “The company registered net sales of IDR 741 billion, or 12% lower than that during the same period of 2005”, he wrote in a letter to the bourse. Domestic sales of the autoglass producer have fallen by 28% in 1H 2006, and an increase in export sales of 7% for the period has been insufficient to offset the decline. The cost of sales has increased by IDR 526.2 billion to IDR 593.4 billion. Production and operational costs have also increased due to the rise in oil prices in October 2005, while higher selling prices have not been able to compensate the oil price price as a result of stiffer competition and lower purchasing power. To survive, the company has tried to increase productivity and boost the sales of some products. The company is also planning to sell-off non productive assets. Asahimas is a joint venture between Asahi Glass Co. Ltd., which has a 43.85% stake, and PT Rodamas Indonesia with 40.62%.