Astra books Rp 19t profit in 2012 as car business soars

Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Fri, March 01 2013, 11:41 AM

Paper Edition | Page: 13

Conglomerate PT Astra International says its core automotive business is once again as the main contributor to its profits amid declining business for several other subsidiaries.

Astra booked Rp 188.05 trillion (US$19 billion) in consolidated revenue last year, up 16 percent compared to Rp 162.56 trillion in 2011.

The company, the second-biggest firm on the bourse by market capitalization, reported Rp 19.42 trillion in consolidated net profits in 2012, up 9 percent from Rp 17.78 trillion a year earlier. The automotive segment accounted for 48.77 percent of total net profits, or Rp 9.47 trillion, according to a financial report submitted on Thursday.

The contribution of the automotive sector to the firm’s total net profits in 2012 was up from Rp 8.27 trillion recorded in 2011, when the sector comprised 46.5 percent of Rp 17.78 trillion in booked net profits.

The company attributed the increased contribution to a spurt in car sales, which have not been affected by the introduction of minimum down payment regulations for motorcycles in June that have led sales in that sector to drop.

Astra’s car sales rose by 25 percent to 605,000 units last year, in line with the national market, which also saw 25 percent increase to 1.1 million vehicle sold. Meanwhile, the company’s motorcycle sales stood at 4.1 million units, a 4 percent drop year-on-year that outpaced a 12 percent decline nationally.

Astra, which is 50.11 percent owned by Jardine Cycle & Carriage Ltd., reported declining contributions from its heavy equipment and agriculture business last year due to low commodity prices.

The conglomerate’s net profits from the sector, which is run by its 59.5 percent owned subsidiary PT United Tractors (UNTR), dropped 2 percent to Rp 3.5 trillion, accounting for 18 percent of the firm’s 2012 total net profits.

Meanwhile, the contribution from agribusiness was flat at Rp 1.9 trillion last year, as main CPO subsidiary PT Astra Agro Lestari (AALI) recorded lower sales prices on higher output. AALI, 79.7 percent owned by Astra, also reported flat growth in net profits last year at Rp 2.4 trillion.

AALI’s production increased 16 percent to 1.5 million tons, pushing revenues up 7 percent to Rp 11.6 trillion, while recording a 3 percent dip in sales prices and higher production costs and operating expenses.

Astra has placed its hopes in its financial services segment, whose Rp 3.7 trillion contribution to the firm’s profits in 2012 was up 12 percent.

The company said that the total amount financed through its automotive-focused consumer finance operations was up 2 percent to Rp 50.3 trillion in 2012, while its 44.6 percent owned Bank Permata booked a 18 percent increase in net profit to Rp 1.4 trillion.

Astra said that it would propose a final dividend of Rp 150 per share at its annual general meeting to be held in April. Along with its interim dividend, the proposed amount will bring dividends to Rp 216 per share, Rp 8.74 trillion or about 45 percent of its total net profits in 2012.