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Economy in brief: Astra posts lower profit in Q1
Diversified business group PT Astra International posted a 2 percent year-on-year (yoy) decrease in net profit in the first quarter of this year to Rp 4
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iversified business group PT Astra International posted a 2 percent year-on-year (yoy) decrease in net profit in the first quarter of this year to Rp 4.98 trillion (US$358.8 million), in line with the declining performance of its business lines.
The company attributed the drop to its dwindling shares in the domestic car and motorcycle markets, as well as weakening commodity prices, among others.
Over the January-March period, profit from Astra’s automotive business line fell by 8 percent yoy to Rp 2.11 trillion, while profit from its agribusiness division slipped by 55 percent yoy to Rp 283 billion, according to its financial statement released on Tuesday.
The report also shows that the company’s profit from its financial services segment dropped by 6 percent yoy to Rp 1.06 trillion.
However, its other business lines — heavy machinery, mining equipment, construction and energy, as well as information technology — saw an upswing in profit.
From the former, profit surged by 68 percent to Rp 1.52 trillion in the first three months of this year, while profit from the latter gained slightly by 4 percent to Rp 27 billion.
Astra’s overall decline in profit came despite the company’s ability to raise its net revenue by 14 percent yoy to Rp 55.82 trillion over the first quarter.
“Astra Group is expected to benefit from the stable coal price, while competition in the car market will intensify,” Astra International president director Prijono Sugiarto said in the statement.
