Krakatau Steel profits surged 46%

Against all odds, state-owned steel manufacturer PT Krakatau Steel reported net profit of Rp459.6 billion last year, jumped 46% from 2007 on stronger sales. 

Krakatau recorded net sales revenue of Rp20.6 trillion or about US$2 billion last year, increased 39% from the previous year. As cost of goods sold also surged 37%, the company reported gross profit of Rp2.7 trillion. Operating expenses also increased significantly last year, but Krakatau managed to record operating profit of Rp1.36 trillion, jumped 71% from the previous year.

Krakatau is the largest steel player in Indonesia with total asset of around US$1.5 billion. Government has repeatedly announced the plan to privatize this company, but delayed significantly due to various issues. Some wanted private placement, while others insisted on privatization through stock market. World's giant steel player Mittal has repeatedly launched initiatives to acquire significant portion of the shares.

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