Semen Gresik eyes net Profit Growth of 30%

Semen Gresik eyes net Profit Growth of 30%
Published: 23 February 2007

PT Semen Gresik Tbk has targeted to grow by 30% in term of net profit this year. In 2006 the bank has managed to book the net profit of IFT1.32 trillion, compared with IDR1.12 trillion in 2005. 
 
The President Director of Semen Gresik Dwi Soetjipto said the company posted the revenue of IDR8 trillion last year, compared with ODR7.8 trillion in 2005. 
 
"We hope that the revenue will grow by 6% from IDR8 trillion in 2006. We want to launce efficiency measures so that the net profit will grow substantially," he said yesterday. 
 
He said the growth is not that much in 2006 as the demand on cement has grown only by 1.6%. 
 
The company has set the target to produce 17.2Mt of cement, and increase of 0.4% from 16.8Mt in 2006. 
 
"The growth is low as the utilization of the machineries has been high." 
 
Semen Gresik has planned to develop new facility in 2008. "We hope we will get approval from shareholders this year so that we can start searching for some capital next year." 
 
At present the company has four facilities with the annual capacity of 8.2Mta. Its unit, PT Semen Padang is with the capacity of 5.24Mta and another unit, PT Semen Tonasa, is with the capacity of 3.48Mta. 
 
Semen Gresik has assigned PT JP Morgan Securities Indonesia to become financial consultant and A.T. Kearney to become the restructuring consultant for the company. 
 
"We hope that before the AGM we have concluded the review on the establishment of holding company. We will bring the review to the general meeting of shareholders to approve."