Astra Records Slight Drop in Profit

TEMPO.CO, Jakarta - PT Astra International has suffered a 14 percent decrease in profit in the 3rd quarter of 2014. The company's profit dropped to Rp 5.9 trillion (around US$ 487.9 million) from last year’s Rp 6.8 trillion (around US$ 562.5 million) in the same period last year. CEO of Astra Prijono Sugiarto, said that the drop was caused by the discount wars between carmakers that affected the marginal profits of the automotive industry significantly. "National automobile sales increased by three percent to 933,000 units, but our sales dropped by one percent to 476,000 units, which in turn caused our market share to drop down from 53 percent to 51 percent," he said on Thursday, October 30, 2014.

Prijono said that the drop in the company's performance is also caused partly by their affiliate automotive spare parts company, PT Astra Otoparts. Astra's share within Astra Otoparts decreased from 95.7 percent to 80 percent in the 3rd quarter of 2014.

According to the company's 3rd quarter financial report in 2014, although the company's automotive business sector suffered a slight drop, the company's total income has increased by six percent to Rp 150.5 trillion (around US$ 12.5 billion). Astra's net income also increased by eight percent to Rp 14.4 trillion (around US$ 1.2 billion). The drop in Astra's automotive sector is compensated by the increase in the company's agro business and mining sector, which experienced a 107 percent and 40 percent increase, respectively.

Astra spokesperson Yulian Warman, said that the company will push its non-automotive business sector in conjunction with its business target to stabilize the income contribution from each of the company's business units.

GANGSAR PARIKESIT | ABDUL MALIK