Teijin Indonesia posts US$29 million loss
PT Teijin Indonesia Fiber Corporation (Tifico) Tbk, a listed unit of Japan's Teijin Limited, reported net loss of US$29.89 million last year (January-December), almost doubled the loss of US$17.1 million in 2004 on poor margin and increasing financial burden.
According to its financial report published today, Tifico recorded total sales of US$272 million in 2005, slightly reduced from US$276 million in 2004 while the cost of goods sold increased from US$270 million to US$275 million.
The polyester staple fiber manufacturer then booked gross loss of US$3.4 million against gross profit of US$5.9 million in the previous year. As the company failed to reduce operating costs, it booked operating loss of US$13.4 million, four times the previous year.
To make things worse, Tifico's financial expenses increased sharply from US$4.3 million to US$8.4 million, resulting in net loss of US$29.89 million last year.
Teijin owns 65% shares in Tifico, followed by Tomen Corporation at 13.4%. Despite the poor performance in the last few years, Teijin decided to sustain the Indonesian unit. In a meeting with president Susilo Bambang Yudhoyono last August, Toru Nagashima, president director of Tifico even promised another US$50 million investment in the country to replace old machinery and establish a new power plant. The Japanese textile raw material giant had shut down its operations in many countries, including in the Philippines.
Teijin also has 30% share in PT Branta Mulia Teijin Indonesia, a joint venture in Indonesia with PT Branta Mulia Tbk, South East Asia's largest tire cord and tire yarn producer. The joint venture produces polyester for tire cord.
Teijin and US giant DuPont operates a polyester film manufacturer in Indonesia under PT Indonesia Teijin DuPont Films with 50.1% and 40.9% shares respectively.
According to its financial report published today, Tifico recorded total sales of US$272 million in 2005, slightly reduced from US$276 million in 2004 while the cost of goods sold increased from US$270 million to US$275 million.
The polyester staple fiber manufacturer then booked gross loss of US$3.4 million against gross profit of US$5.9 million in the previous year. As the company failed to reduce operating costs, it booked operating loss of US$13.4 million, four times the previous year.
To make things worse, Tifico's financial expenses increased sharply from US$4.3 million to US$8.4 million, resulting in net loss of US$29.89 million last year.
Teijin owns 65% shares in Tifico, followed by Tomen Corporation at 13.4%. Despite the poor performance in the last few years, Teijin decided to sustain the Indonesian unit. In a meeting with president Susilo Bambang Yudhoyono last August, Toru Nagashima, president director of Tifico even promised another US$50 million investment in the country to replace old machinery and establish a new power plant. The Japanese textile raw material giant had shut down its operations in many countries, including in the Philippines.
Teijin also has 30% share in PT Branta Mulia Teijin Indonesia, a joint venture in Indonesia with PT Branta Mulia Tbk, South East Asia's largest tire cord and tire yarn producer. The joint venture produces polyester for tire cord.
Teijin and US giant DuPont operates a polyester film manufacturer in Indonesia under PT Indonesia Teijin DuPont Films with 50.1% and 40.9% shares respectively.
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posted by yosef at 8:11 AM
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