PT Astra International Tbk (ASII) posted a drop in first half net profits in 2013 by 9 percent to Rp 8, 8 trillion, compared with the previous acquisition in 2012 of Rp 9, 7 trillion. Net income per share decreased by 9 percent to Rp218 per share.
The decline in profit was also followed by the acquisition of net revenues during the first half of 2013, down slightly by 2 per cent to Rp94, 3 trillion over the same period in 2012 amounted to Rp95, 9 trillion.
“Although the outlook remains positive domestic demand, increased competition in the automobile market, rising labor costs and declining commodity prices expected to affect the performance of the business in the second half of this year,” said President Director of Astra International Prijono Sugiarto in a written statement on Tuesday (30 / 7/2013).
The company contributed revenue of the company’s business lines, one of which is the automotive division net profit declined by 10 percent to Rp 4, 4 trillion, consisting of R1, 9 billion from the Company and its subsidiaries, as well as Rp2, 5 trillion from associated companies and jointly controlled entities in the automotive field.
Throughout the first half of 2013, demand for motor vehicles remains high, supported by rising incomes and loan interest rates are still affordable. However, increased competition due to increased domestic production capacity and the high cost of labor has led to decrease in net income contribution from the automotive segment.
Regulatory minimum down payment on auto financing imposed sharia financing for companies since January 1, 2013 and the bank on 1 April 2013, had little impact on the first half performance of the Company.
“While it is still too early to estimate the impact of rising fuel prices that occurred in late June, the automotive sales,” he explained.