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Astra faces double blow as car sales slump, commodity prices weaken
Astra International’s net profit was down by 7 percent year-on-year (yoy) to Rp 15.87 trillion (US$1.14 billion) in the January-to-September period of this year.
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PT Astra International president director Prijono Sugiarto said profits were down by 7 percent yoy during the first nine months of this year. (kompas.com/Kristianto Purnomo)
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luggish car sales throughout the year combined with weakening commodity prices undermined the financial performance of conglomerate PT Astra International during the first nine months of this year.
Financial analysts predicted the bleak financial condition would continue until the end of the year as there were no signs of a recovery in car sales, the largest income source for the company.
The publicly listed company’s profit was down by 7 percent year-on-year (yoy) to Rp 15.87 trillion (US$ 1.14 billion) in the January to September period of this year.
Astra’s president director Prijono Sugiarto said in Jakarta on Thursday that the profit decline was caused by a fall in revenue contribution from the company’s automotive and agribusiness lines.
Although Astra saw a 4 percent increase in motorcycle sales and a 24 percent profit growth in its automotive parts subsidiary PT Astra Otoparts during this year, its automotive division’s profit fell to Rp 6.1 trillion, down 14 percent from the same period last year. This was due to slumping domestic car sales.
Data from the Association of Indonesian Car Manufacturers (Gaikindo) showed that domestic car sales declined by 12 percent yoy to 753,600 units as of as of the end of September.
The association’s vice chairman Jongkie Sugiarto said the association had predicted the slump since the beginning of the year, taking into account the general elections held in April.
