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Astra International revenue estimated to decline

JAKARTA: Indonesia's largest car and motorbike maker PT Astra International Tbk is predicted to book smaller revenue in 2Q 2011 than the same period last year due to weaken automotive sector contribution. Four-wheel vehicle production is predicted to

JAKARTA: Indonesia's largest car and motorbike maker PT Astra International Tbk is predicted to book smaller revenue in 2Q 2011 than the same period last year due to weaken automotive sector contribution. Four-wheel vehicle production is predicted to cut by 15% amid to delay on component delivery from Japan.Furthermore, Astra International President Director Prijono Sugiarto stated the company has not detail the exact number of revenue reduction in April-June 2011.Our revenue depends on four-wheel production volume, he said after attending PT United Tractors Tbks GMS, one of its subsidiaries.He hopes United Tractorss heavy equipment sales could cover up the less bright four-wheel vehicle sales.In 1Q 2011, Komatsu sales volume rose 81% to 2,207 from 1,218 in the same period last year. Astras net profit in 1Q 2011 increased 43% to IDR4.3 trillion from IDR3.01 trillion in 1Q 2010. Revenue surged 30% to IDR38.69 trillion from IDR29.68 in 1Q 2010.Subsidiaries actionPT Astra Graphia Tbk, Astras subsidiary on information technology sector is studying a possibility to acquire a company or an IT product to meet 2013s revenue target at IDR3 trillion. The date and fund source is unclear.Capital Prices analyst Deddy Ertanto viewed the plan as an excellent pace as long as the company studies it with a thorough review.Other subsidiary, United Tractors also plans to have an acquisition over a coal mine in Center Kalimantan. The fund will be taken from the proceeds of it right issues agenda that will release 403.25 million new shares at IDR15.050 per unit. The corporate act is projected to collect IDR6.07 trillion.The acquisition will through one of its subsidiaries, PT Pamapersada Nusantara.United Tractors will distribute dividend of IDR430 per share or a total of IDR1.6 trillion. The figure is 40% of their total net profit in 2010 at IDR3.87 trillion. (T05/wiw)

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