"The Astra Group suffered business challenges during the whole of 2015 making its net profit drop. Excluding non-cash cost expenses stemming from depreciation of coal mine property value in 2015 and the years before, the corporations net profit declined by 20 percent to Rp16 trillion," President Director, Prijono Sugiarto, said in a press release received here on Thursday.
He said he had remained wary of future business prospects, but with the companys capability to produce good cash and a strong financial balance sheet, Astra International Tbk. would continue to invest in the future and be ready to adopt any opportunity stemming from an improvement in the economic conditions.
Astras consolidated net income was down 9 percent to Rp184.2 trillion in 2015, owing to a decline in the automotive segment, heavy equipment, mining and agribusinesses.
"In 2015, the company faced a reduction in commodity prices and domestic consumption, while competition from the car sales sector increased and the quality of corporate credit dropped due to a decline in contribution from all sectors, except information technology," he said.
He also explained that the Astra Groups business lines covered automotive, financial service, heavy equipment and mining, agribusiness, infrastructure, logistic and others, and information technology.
The net profit contribution from the groups automotive business was down 12 percent to Rp7.5 trillion, while financial services contribution slipped by 25 percent to Rp3.6 trillion.
Net contribution of the heavy equipment and mining business sector to the Astra Group dropped by 28 percent to Rp2.3 trillion and agribusiness by 75 percent to Rp493 billion.
Net profit from infrastructure, logistics and other segments was down 17 percent to Rp406 billion. Only the information technology segment reported an increase of 2 percent in net profit to Rp204 billion.(*)
Editor: Heru Purwanto
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