Astra Q1 net profit drops 22% driven by heavy equipment decline

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Photo by Toyota Motor Corp

JAKARTA (TheInsiderStories) – PT Astra Internatinal Tbk recorded consolidated net profit of Rp3.11 trillion in the first quarter,  dropped 22 percent from Rp3.99 trillion in the same period last year, as sales fell 7 percent to Rp41.89 trillion, from Rp45.19 trillion in the same period last year. The decline was mainly attributable to a significant profit decline in heavy equipment and financial service business units.

The three main contributors to the company’s net profit were still automotive, financial services and heavy equipment reached Rp2.66 trillion or 85.6 percent to the total revenues.

Automotive business unit contributed Rp1.58 trillion of net profit, down 3 percent from the same quarter last year of Rp1.62 trillion, financial services unit booked net profit of Rp641 billion, down 46 percent from Rp1.19 trillion a year ago, while heavy equipment and mining net profit reached Rp445 billion, cut by over half, 55 percent, from Rp983 billion in the same quarter last year.



The other business units, agriculture and infrastructure, logistic and related sector recorded an increase, however these sectors contribution was less significant. Meanwhile, information technology unit dropped 8 percent to Rp34 billion from Rp37 billion a year ago.

Agribusiness sector booked net profit of Rp 333 billion, up 168 percent from Rp124 percent, infrastructure, logistic and related sectors  booked net profit of Rp82 billion, up 128 percent from Rp36 billion a year ago,

“The Astra group still feels the impact of low vehicle demand and low commodity prices, as well as declining the quality of corporate credit of Bank Permata. This condition is still become a challenge for the company,” said Prijono Sugiarto, president director of Astra International.

The company said in a statement that the revenues from heavy equipment sales, both in mining and agribusiness, declined. The sales contribution from Toyota car sales also decline, dragging the company’s net profit lower.



In the first three months, vehicle sales of Astra Group fell 7 percent to 127,000 units from the same quarter last year, with market share of 48 percent, edged down from 49 percent in the same quarter last year. National vehicle sales in the period fell 5 percent to 267,000 units.

Motorcycle sales of its unit PT Astra Honda Motor declined slightly to 1.1 million units. Nationally, motorcycle sales fell 6 percent to 1.5 million units in the first quarter compared the same quarter last year.

Meanwhile, the company has net cash, outside financial group, of Rp3.1 trillion, compared to net cash of Rp1.0 trillion in the same period last year.    (*)

 

The post Astra Q1 net profit drops 22% driven by heavy equipment decline appeared first on The Insider Stories.

Source: The Insiderstories
Astra Q1 net profit drops 22% driven by heavy equipment decline

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