Friday, March 23, 2007

Poor margin, Asahimas records losses

Flat glass and automotive glass manufacturer PT Asahimas Flat Glass Tbk recorded net loss of Rp17.2bn in 2006 (against net profit of Rp212bn in 2005) on poor margin. According to its financial report published today, Asahimas booked significant drop of operating profit from Rp309bn to Rp7.7bn last year caused by the decline in domestic sales that derives from the low demand in the automotive glass segment. On the other hand, the rise in the company’s production and operational cost caused by the 2005 industry fuel hike cannot be balanced by the rise in sales worth, due to a tight competition and the weakening of purchasing power (also due to 2005 fuel hike).



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