Indonesia’s PT Semen Gresik expects 2006 net profit to increase by up to 20% on year because of higher sales, its president said Friday.
"The increase in net profit would be supported by stronger sales and efficiency in our operations," Gresik’s President Dwi Sutjipto said.
He said the company’s sales this year are expected to grow by up to 7%.
In 2005, net profit at the nation’s largest cement maker by output rose 80% on year to IDR936bn, thanks to an increase in revenue from higher cement prices. Sutjipto said net profit growth in 2006 will be slower due to high fuel prices and interest rates.
Gresik’s sales in 2005 rose 28% to IDR7.76 trillion from IDR6.07 trillion a year earlier. The company last year sold 14.28Mt of cement in the domestic market, up 6.6% from 13.40Mt in 2004.