Indocement`s domestic sales up 14 pct

Citeureup, W Java (ANTARA News) - Cement maker PT Indocement Tunggal Prakarsa Tbk. said its first-semester domestic sales rose 14.1 percent to 7.1 million tons from 6.3 million tons a year earlier.

As the first-semester domestic cement demand grew 14.8 percent, the company`s market-share increased to 31.2 percent in the January-June 2011 period from 31.1 percent in the same period last year, PT Indocement Corporate Secretary Sahat Panggabean said in a statement on Sunday.

The rising domestic sales were the result of high demand particularly in Java which grew 18.7 percent, he said.

However, exports fell 33.7 percent to 0.3 million tons from 0.5 million tons as the company focused on the domestic market, he said.

Because of the high sales, net income rose 18.1 percent to Rp6,331.3 billion compared to Rp5,360.2 billion in the same period last year, he said.

He also said gross profit margin dropped to 47.4 percent from 51.7 percent. However, gross profit in absolute amount rose 8.2 percent to Rp3,001.6 billion from Rp2,773.8 billion.

Meanwhile, operating expenses increased 23.6 percent to Rp892.6 billion from Rp722.1 billion due to an increase in transportation costs in line with an increase in sales and distribution fees for land and sea transportation following fuel price hikes.

The profit margin fell to 33.3 percent from 38.3 percent but in absolute amount the company recorded a 2.8 percent rise in operating profit to Rp2,109 billion from Rp2,051.7 percent, he said.

He said, earning before interest, tax, depreciation and amortization (EBITDA) also increased 2.5 percent to Rp2,414 billion from Rp2,354.1 billion.

Overall, profit in the current period went up 5.4 percent to Rp1,729.4 billion from Rp1,641.1 billion, he said.(*)

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