Semen Padang reports higher net profits

Semen Padang reports higher net profits
15 December 2005

PT Semen Padang, a unit of PT Semen Gresik, Indonesia, set the target of net profit of IDR212bn, representing an increase of 56.15 per cent from the net profit target of this year as much as IDR135.91bn.  The cement manufacturing company also targeted to book total sales of IDR2.74 trillion or increase by 29 per cent from this year’ sales target of IDR2.11 trillion.  The sales volume target of the company, meanwhile, was 5.32Mt, compared to an actual 5.1Mt.
The President Director of Semen Padang, Endang Irzal, said that among the strategy of the company to boost such revenue was by relocating its market from export market to domestic one, as the latest provide higher profit margin.  "The target will also supported by penetration of Semen Padang, Semen Gresik and Semen Tonasa to improve efficiency," he said. 
Until October 2005, the sales volume of Semen Padang has reached 3.23Mt, or increase by 3.3 per cent from 3.13Mt during the same period of last year.  The sales volume of Semen Gresik increases by 7.1 per cent to 6.71Mt during the first ten months of the year, from 6.26Mt during the same period of last year. 
The Marketing Director of Semen Padang, Widodo Santoso, said that the revenue growth target was higher than the sales volume growth target due to the higher price of cement on October.  The price increase of 15-20 per cent would provide significant revenue increase for the company.  "If this year we increase the price on October, it means that we will apply the new price for the whole year. Therefore the revenue growth will be much higher than the growth of sales volume," Widodo said.  In the meantime the operating profit of the company would predictably increase by 60.55 per cent to IDR368 billion from IDR229 billion. 
The production capacity of the company was 5.24Mt from four facilities of the company. The capacities of Indarung II and III facilities are 660,000t each, while the capacities of Indarung IV were 1.62Mt, and Indarung V was 2.3Mt (original report Bisness News) Published under Cement News