Indonesia Gresik Q2 net soars on sales

Semen Gresik  reported on Tuesday a jump in second-quarter net profit as new construction spurred demand and historically low interest rates reduced debt payment costs.

Semen Gresik saw net profit jump 69 per cent to 99.17 billion rupiah ($10.9 million) in the three months ended June 2004, compared to the same period last year, according to Reuters calculations based on first-half results. Gresik’s market share rose to 45 per cent in the first six months of this year from 42.6 per cent, the company has said.

Some analysts have forecast domestic cement sales would rise eight per cent this year, helped by property projects and other spending linked to the country’s long election process. Domestic cement sales volumes grew only one percent to 27.5Mt
in 2003, hurt by rises in fuel and utility prices. Volumes rose by almost nine per cent for the first six months this year.