PT Astra International Tbk (ASII) recorded a profit of Rp 4.3 trillion at the end of March 2013. Thinning profit 7% of the acquisition of the same period of the previous year of Rp 4.6 trillion.
The fall in profit was in line with the Astra stagnanya Astra turnover alias net income in the first quarter of 2013 amounted to Rp 46.7 trillion, edged up 1% compared to the same period in 2012 of Rp 46.4 trillion.
“Indonesia’s economic outlook remains positive, although in the short term gains Astra will be affected by rising labor costs, weakening commodity prices, competition in the automotive industry and the impact of regulations on the minimum down payment auto financing sharia,” said President Director of Astra International Prijono Sugiarto in press release, Wednesday (24/04/2013).
Astra Group activities focus on six core business lines, namely Automotive Division, Financial Services, Heavy Equipment and Mining, Agribusiness, Infrastructure and Logistics, and Information Technology with the following details.
Automotive Division’s net profit fell by 10% to Rp 2.2 trillion, consisting of Rp 1 trillion from the Company and its subsidiaries, as well as the contribution from associates and jointly controlled entities in the automotive field of Rp 1.2 trillion.
Throughout the first quarter of 2013, demand for motor vehicles remains high, mainly supported by rising incomes and borrowing rates are affordable. However, increased competition due to increased domestic production capacity and rising labor costs have led to a reduction of the net profit contribution of automotive segments. This condition is expected to continue in the second quarter.
Regulatory minimum down payment on auto financing imposed sharia financing for companies since January 1, 2013 and applies in the bank on 1 April 2013, had little impact on the performance of the first quarter. The new regulation is expected to have an impact on the motorbike sales in the first half.
Total national car sales increased 18% to 296,000 units. Astra’s car sales (Toyota, Daihatsu, Isuzu, UD Trucks and Peugeot) increased 7% to 155,000 units, with a market share of 52%. In the first quarter Astra launched three new models and five facelift models.
Astra Daihatsu Motor has completed construction of a new factory in Karawang with a total production capacity of 120,000 units per year, so overall production capacity to reach 460,000 units per year.
While the national motorcycle sales rose 2% to 2 million units. Honda motorcycle sales output of PT Astra Honda Motor (AHM) rose 14% to 1.2 million units, with an increase in market share from 55% to 62%.
Throughout the first quarter of 2013, PT Astra Honda Motor launched two new models and four models facelift. PT Astra Honda Motor has increased the production capacity for sport type motorcycle from 900 units to 1,300 units per day.
PT Astra Otoparts Tbk (AOP), component manufacturing company in which 95.7% owned by the Company, recorded a net profit of Rp 267 billion, an increase of 2%, where 71% is the contribution from associates and jointly controlled entities. 11% increase in revenues eroded by rising labor costs.
Division of Financial Services net profit rose 23% to Rp 1 trillion. Total financing through Astra automotive finance business consisting of Federal International Finance (FIF), Astra Credit Companies (ACC), and Toyota Astra Financial Services (TAFS) grew 6% to Rp 13.2 trillion, including joint financing through bank financing without recourse .
Total weight of equipment financing through PT Surya Artha Nusantara Finance and PT Komatsu Astra Finance fell 40% to Rp 1.3 trillion. PT Bank Permata Tbk is 44.6% owned by the Company, posted a net profit of Rp 356 billion, an increase of 7%. Net interest income increased driven by higher loan growth by 36%, despite the increase in operating costs.
PT Asuransi Astra Buana (AAB) subsidiaries engaged in insurance business had a net profit due to higher growth in gross premium income in excess payment of reinsurance and claims costs are high.
Net income and Mining Equipment division fell 26% to Rp 0.7 trillion. PT United Tractors Tbk (UT), which is 59.5% owned by the Company, reported a 26% drop in net income to Rp 1.1 trillion, while net income decreased by 17%.
Business segment net revenue of construction machinery fell 42%, due to lower sales of Komatsu heavy equipment by 42% to 1,272 units. This happens due to decreased demand from the mining sector, especially for large units. Although when compared with the final quarter of 2012, unit sales increased by 70%.
Pamapersada PT Nusantara (PAMA), a subsidiary of UT in the field of coal mining contractor posted a net income increase of 19%, in line with the increase in coal production by 12% to 24 million tons and increase soil removal work (overburden removal) by 3% to 199 million bcm. Good performance was driven by increased mining capacity and good weather conditions.
UT subsidiaries in mining reported net income decreased by 36%, which is caused by the decrease in coal sales by 23% to 1.2 million tons. Decline in coal prices and rising fuel prices have a negative impact on gross profit margin.
Agribusiness Division’s net profit decreased by 6% to Rp 0.3 trillion. PT Astra Agro Lestari Tbk (AALI), which is 79.7% owned by the Company, reported net income of Rp 356 billion.
Palm oil production increased 22% to 352,000 tonnes, which resulted in increased revenue by 6% to Rp 2.7 trillion, although compared to the first quarter of 2012 the average CPO price decreased 16% to Rp 6.464/kg. Overall net income decreased, due to the high cost of production and operational costs.
Net income Infrastructure and Logistics Division declined by 19% to Rp 124 billion. PT Marga Mandala Sakti (MMS), which operates the toll road operator pathway Tangerang – Merak along 72.5 km, which is 79.3% owned by the Company, noted an increase in the volume of vehicle traffic by 10% to 10 million vehicles.
PT PAM Lyonnaise Jaya (PALYJA), a leading provider of clean water in the area west of Jakarta, reported a decline in water sales volume by 3% to 37 million m3. PT Serasi Autoraya (SERA), recorded an increase in revenue, mainly supported by the increasing number of vehicles on lease contracts TRAC vehicle rental business by 6% by the number of vehicles of more than 31,000 units. The high cost of depreciation and operating costs lead to lower net income compared to the first quarter of 2012.
Net income and Information Technology Division of Rp 20 billion, down 22% compared to the first quarter of 2012. PT Astra Graphia Tbk (AG), a company engaged in the field of information technology and the sole agent of Fuji Xerox in Indonesia, which is 76.9% owned by the Company, recorded a net profit of Rp 26 billion.