Holcim Profit Down 7 Percent

Cement plant Holcim Indonesia posted a profit of Rp 467 billion during the first half of 2013. This figure is down 7 percent compared to net income in the same period a year earlier.
In a financial statement released, the cement factory managed to collect revenue to Rp 4.482 trillion. The achievement is obtained from the optimization of product mix and distribution to meet the challenges of increased market supply of capacity and imports increase. The revenue is actually higher than last year which was only Rp 4.191 trillion.
However, because of higher distribution costs make profits become depressed. Additionally, the increased cost of sales and administrative as well as financial costs, have an impact on short-term profits.
Nevertheless, President Director, Eamon Ginley convey, the general performance of Holcim are on the rise. It can be seen from the increase in gross profit of 33 percent to 35 percent. Holcim also has distributed interim dividend of Rp 37 per share to be paid, 15% greater than the interim dividend last year.
“With this dividend, for sure Holcim continues to provide benefits to its shareholders, and to continue to implement strategies based on adding value to customers, and maximize the efficiency of capacity,” Ginley said in a release received Suara Merdeka.
Holcim Indonesia is currently working in the middle market of excess supply conditions. However, he expects this condition is temporary.
Cement demand continued to grow consistently in the medium and long term, because the Indonesian economy continues to grow. This is supported by the existence of government and private sector investment in infrastructure and housing needs is also continuing. Therefore, the development of new plant proyen Holcim in Tuban, East Java, will provide benefits to the company.
“The cost of distribution to major markets in East Java to be more efficient, and will ensure smooth supply and better service for customers,” adds Ginley.
1 Tuban cement plant will produce 1.7 million tons of cement per year and will start in accordance with the planned schedule. Cement mill will begin operations on in August this year.