JDS.L Regulatory News (JDS)

28 Jul 2006 10:39

Jardine Strategic Hldgs Ld28 July 2006 To: Business Editor 28th July 2006 For immediate release PT Astra International Tbk 2006 Half Year Financial Statements The following announcement was issued today by the Company's 63%-ownedsubsidiary, Jardine Cycle & Carriage Limited, which holds 50.1% of PT AstraInternational Tbk. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 GolinHarrisKennes Young (852) 2501 7987 28 July 2006 PT ASTRA INTERNATIONAL TBK 2006 HALF YEAR FINANCIAL STATEMENTS Highlights • Underlying earnings per share down 39% to Rp 453 • Markets for motor vehicles and motorcycles decline by 49% and 26%, respectively • Good progress in mining contracting business • 14% growth in palm oil production and firmer prices "While we will continue to face challenging markets in the short term, we areconfident that the prospects for the Group in the medium term remainattractive." Michael D. Ruslim President Director 28 July 2006 Group Results Six months ended 30 June 2006 2005 Change Rp bn Rp bn % Revenue 25,906 29,844 -13Operating profit 2,449 3,405 -28Underlying profit 1,834 3,029 -39Net income 1,863 3,029 -39 Rp RpUnderlying earnings per share* 453 748 -39Earnings per share* 460 748 -39 As at As at 30.6.06 31.12.05 Change Rp bn Rp bn %Shareholders' funds 20,975 20,424 3 Rp RpNet asset value per share 5,181 5,045 3 The financial results for the six months ended 30 June 2006 and 30 June 2005have been prepared in accordance with accounting principles generally acceptedin Indonesia. These results are unaudited. The financial results for the year ended 31 December 2005 have been audited inaccordance with the Indonesian Institute of Accountants' Auditing Standards. \* The basis for calculating underlying profit and earnings per share is set out in the Note. PRESIDENT DIRECTOR'S STATEMENT Overview The Group faced difficult trading conditions in the first half of 2006, asconsumer purchasing power continued to be impacted by the reduction of fuelsubsidies towards the end of 2005 and the higher interest rate environment. The Group's businesses took measures to respond to the new trading environment,and the first-half results were satisfactory in the circumstances. Performance The Group's underlying profit for the first half decreased by 39% to Rp 1.8trillion and the underlying profit per share decreased to Rp 453. Net incomedecreased by 39% to Rp 1.9 trillion in the first half of 2006. Automotive Underlying profit from the automotive businesses fell by 55% to Rp 0.8 trillion. The overall market for motor vehicles fell by 49% to 149,634 units in the firsthalf of the year due to weakened consumer demand. Astra's motor vehicle sales,however, declined by a smaller 39% to 83,302 units, increasing its market sharefrom 46% to 56%. Astra launched three new models during the period, the ToyotaYaris in February, Toyota New Corolla Altis in May, Daihatsu Zebra Master inJune and all received an encouraging response. The overall motorcycle market decreased by 26% to 1,810,979 units. Hondamotorcycle sales declined by 29% to 913,547 units and Astra's market sharedecreased slightly from 52% to 50%. During the first six months, Honda launchedtwo new models, Honda Supra Fit R (April) and Honda New Mega Pro (June). PT Astra Otoparts Tbk's component sales at Rp 1.5 trillion were 20% down on theprevious year. Non-Automotive The non-automotive businesses, which comprise mainly financial services, heavyequipment and agribusiness, produced an underlying profit of Rp 1.0 trillion, a17% reduction over the first half of 2005. Lower profit from financial servicesand heavy equipment distribution were partially compensated for by betterperformances from agribusiness and mining contracting. The amount financed by Federal International Finance ("FIF") and Astra CreditCompanies ("ACC") in the first half decreased by 33% to Rp 7.9 trillion, in linewith the decline in the automotive market. To support their financingactivities, FIF and Astra Sedaya Finance (one of the motor vehicle financingcompanies under the umbrella of ACC) issued bonds in the amounts of Rp 600billion and Rp 575 billion in April and June, respectively. PT United Tractors Tbk's heavy equipment business recorded improved sales due tostrong results in PT Pamapersada Nusantara where there was an increase inoverburden removal of 32% and in coal extraction of 23%. Sales of Komatsu heavyequipment were 25% below the corresponding period in 2005 at 1,101 units,although Komatsu was able to increase its market share from 46% to 50%. Overallthe net income decreased from Rp 557.7 billion to Rp 538.4 billion. PT Astra Agro Lestari Tbk achieved higher sales due to a 23% increase in crudepalm oil sales volume and firmer prices. Net income from agribusiness rose by 8%to Rp 414.7 billion. Efforts continue to source land for new palm oil and rubberplantations. The viability of producing bio-diesel is also being evaluated. Astra's small infrastructure investment in a toll road is performing well. Group The Group's net asset value grew by 3% during the six months to Rp 21.0 trillionand the net asset value per share rose to Rp 5,181. The Group's net debt as at 30 June 2006 was Rp 7.4 trillion, compared to Rp 8.4trillion at the end of 2005. The Group's net debt, excluding borrowings withinthe Group's financial services businesses, was Rp 2.3 trillion at the end ofJune as compared with Rp 2.7 trillion at the prior year-end. The net debt toequity ratio (excluding financial services) at 30 June was 11% down from 13% at31 December 2005. Prospects While we will continue to face challenging markets in the short term, we areconfident that the prospects for the Group in the medium term remain attractive. Michael D. Ruslim President Director 28 July 2006 NOTE Earnings per share GroupSix months ended 30 June 2006 2005 Basic earnings per shareProfit attributable to shareholders (Rp bn) 1,863 3,029Weighted average number of ordinary shares 4,048 4,048in issue (millions) Basic earnings per share (Rp) 460 748 Underlying earnings per shareUnderlying profit attributable to shareholders (Rp bn) 1,834 3,029 Basic underlying earnings per share (Rp) 453 748 A reconciliation of net income and underlying profit is as follows: GroupSix months ended 30 June 2006 2005 Change Rp bn Rp bn % Underlying profit 1,834 3,029 -39Gain on sale of investments 29 - n.a Net income 1,863 3,029 -39 - end - For further information, please contact: PT Astra International Tbk Aminuddin, Corporate Secretary Tel: 62 - 21 - 6530 4956 This information is provided by RNS The company news service from the London Stock Exchange