MARKET DEVELOPMENT
Indonesian Conglomerate Astra International Q1 Profit Down 22 Pct
Indonesian Conglomerate Astra International Q1 Profit Down 22 Pct
* Auto, mining and financial service units fare worse
* Palm oil arm outperforms on forex gain
* Business condition to remain challenging - Astra exec
27/04/2016 (Reuters) - Indonesian conglomerate PT Astra International Tbk reported a 22 percent drop in first-quarter net profit on Tuesday due to weaker performances at its automotive, mining equipment and financial service units.
Astra's net profit was 3.11 trillion rupiah ($235.7 million) for the three months ended March 31, down from 3.99 trillion rupiah a year earlier and the sixth straight year-on-year decline in quarterly profit, according to Thomson Reuters data.
"Astra Group is still experiencing low automotive demand and weak commodity prices, as well as a reduction in the quality of corporate loans at Bank Permata," Astra President Director Prijono Sugiarto said in a statement.
"The business condition is expected to remain challenging."
Net profit at Astra's heavy and mining equipment business fell 55 percent, while financial services declined 46 percent. The conglomerate's automotive distribution division, its biggest earnings contributor, slipped 3 percent.
Indonesian lender PT Bank Permata Tbk, which is 44.6 percent-owned by Astra, posted a net loss of 376 billion rupiah as it increased provisions for bad loans.
Astra's palm oil arm, PT Astra Agro Lestari Tbk, was the best performing unit with a 168 percent jump in net profit after a strengthening rupiah currency helped to reduce its U.S.-dollar debt burden.
($1 = 13,195.00 rupiah)
* Palm oil arm outperforms on forex gain
* Business condition to remain challenging - Astra exec
27/04/2016 (Reuters) - Indonesian conglomerate PT Astra International Tbk reported a 22 percent drop in first-quarter net profit on Tuesday due to weaker performances at its automotive, mining equipment and financial service units.
Astra's net profit was 3.11 trillion rupiah ($235.7 million) for the three months ended March 31, down from 3.99 trillion rupiah a year earlier and the sixth straight year-on-year decline in quarterly profit, according to Thomson Reuters data.
"Astra Group is still experiencing low automotive demand and weak commodity prices, as well as a reduction in the quality of corporate loans at Bank Permata," Astra President Director Prijono Sugiarto said in a statement.
"The business condition is expected to remain challenging."
Net profit at Astra's heavy and mining equipment business fell 55 percent, while financial services declined 46 percent. The conglomerate's automotive distribution division, its biggest earnings contributor, slipped 3 percent.
Indonesian lender PT Bank Permata Tbk, which is 44.6 percent-owned by Astra, posted a net loss of 376 billion rupiah as it increased provisions for bad loans.
Astra's palm oil arm, PT Astra Agro Lestari Tbk, was the best performing unit with a 168 percent jump in net profit after a strengthening rupiah currency helped to reduce its U.S.-dollar debt burden.
($1 = 13,195.00 rupiah)