Holcim Indonesia shares lower after H1 net profit falls 96 per cent

Holcim Indonesia shares lower after H1 net profit falls 96 per cent
Published: 18 September 2007

Shares of PT Holcim Indonesia shares were lower in late morning trade Tuesday after the cement company reported that its first-half net profit plunged 96 percent to 5.76 billion rupiah due to costs from an employee separation scheme and forex losses.

"I think investors were largely disappointed by the company’s bottomline," BNI Securities analyst Maxi Liesyaputra said.

He said the company has significant amount of long-term dollar-denominated debt equivalent to 3.54 trillion rupiah.

"The dollar-denominated debt means the company is prone to fluctuations of the dollar/rupiah," said Liesyaputra who has a "hold" call on the stock. He expects the company’s net profit to fall to 25 billion rupiah this year from 175.9 billion rupiah last year, due partly to forex losses.
Holcim Indonesia is 77.33 percent owned by Holderfin BV.

At 11.32 am, Holcim Indonesia shares were down 20 rupiah or 1.9 per cent at 1,060 rupiah.