JDS.L Regulatory News (JDS)

31 Oct 2006 09:59

Jardine Strategic Hldgs Ld31 October 2006 To: Business Editor 31st October 2006 For immediate release PT Astra International Tbk 2006 Third Quarter Financial Statements The following announcement was issued today by the Company's 64%-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 GolinHarrisKatherine Wang (852) 2501 7984 31 October 2006 PT ASTRA INTERNATIONAL TBK 2006 THIRD QUARTER FINANCIAL STATEMENTS Highlights • Underlying earnings per share down 34% to Rp 732 • Decline in Astra wholesale of motor vehicles and motorcycles moderates • Improved production in contract mining business • 18% growth in palm oil sales volume and firmer CPO prices • Interim dividend up 50% to Rp 150 per share "While our markets remain challenging, there are signs of improvement and we areconfident that the medium-term prospects for the Group remain attractive." Michael D. Ruslim President Director 31 October 2006 Group Results Nine months ended 30 September 2006 2005 Change Rp bn Rp bn % Revenue 40,214 46,753 -14Operating profit 3,819 5,292 -28Underlying profit 2,964 4,489 -34Net income 2,992 4,489 -33 Rp RpUnderlying earnings per share* 732 1,109 -34Earnings per share* 739 1,109 -33 As at As at 30.09.06 31.12.05 Change Rp bn Rp bn % Shareholders' funds 21,700 20,424 6 Rp Rp Net asset value per share 5,360 5,045 6 The financial results for the nine months ended 30 September 2006 and 30September 2005 have been prepared in accordance with accounting principlesgenerally accepted in Indonesia. These results were unaudited. The financial results for the year ended 31 December 2005 have been audited inaccordance with the auditing standards established by the Indonesian Instituteof Accountants. \* The basis for calculating underlying profit and earnings per share is set out in the Note. PRESIDENT DIRECTOR'S STATEMENT Overview While the Group continued to face difficult trading conditions brought about bythe reduction of fuel subsidies in the last quarter of 2005 and the higherinterest rate environment, there are signs of improvement in consumerconfidence. Recent reductions in interest rates and lower inflation are expectedto contribute a further improvement in economic growth. Performance The Group's underlying profit for the nine months to 30 September 2006 declinedby 34% to Rp 3.0 trillion. Underlying profit per share decreased to Rp 732. Automotive Underlying profit from the automotive business was 47% lower for the nine monthsat Rp 1.4 trillion. Weak demand in the first nine months saw the wholesale market for motor vehiclesfall by 47% to 233,702 units. Astra's motor vehicle sales declined by a lower38% to 127,366 units and its market share now stands at 55%. During the period,Astra successfully launched one new model and four revamped models. The overall wholesale market for motorcycles declined 20% to 3.1 million unitsfor the nine months, although an improvement over the 26% decline at thehalf-year. Honda motorcycle sales were 20% lower at 1.6 million units, butAstra's market share recovered to 52% during the third quarter. Honda broadenedits product range during the period with the launch of three new models, theHonda Supra Fit R, Honda New Mega Pro and Honda Vario, its first automaticmodel. PT Astra Otoparts' component manufacturing operations continued to be affectedby lower volumes with sales down 17% to Rp 2.4 trillion. Non-Automotive Underlying profit from the non-automotive businesses, comprising mainlyagribusiness, financial services, and heavy equipment was Rp 1.5 trillion, areduction of 13% compared to the first nine months of 2005. Net income from agribusiness rose by 6% to Rp 623 billion. PT Astra Agro LestariTbk ("AAL") booked higher sales due to an 18% increase in crude palm oil ("CPO")sales volume and better CPO prices. Efforts continue to be made to source landfor new palm oil and rubber plantations and AAL is reviewing the viability ofproducing bio-diesel. Astra's financial services activities declined in line with the automotivemarket. The amounts financed by Federal International Finance ("FIF") and AstraCredit Companies were down 30% to Rp 13.1 trillion. In the first half of theyear, both FIF and Astra Sedaya Finance used the bond markets to raise financefor their activities. Net income from heavy equipment increased by 4% to Rp 842 billion. PT UnitedTractors Tbk's contract mining subsidiary, PT Pamapersada Nusantara, iscontinuing to perform well with increases in overburden removal and coalextracted of 23% and 20%, respectively. Sales of Komatsu heavy equipmentdeclined by 16% to 1,649 units due to lower demand in the mining sector, but itsmarket share increased from 46% to 48%. Astra's infrastructure investment in a toll road is performing well. In July,Astra purchased a 30% interest in the franchise for one of the two GreaterJakarta water utilities which runs until 2023. Further infrastructureinvestments are under review. Group The Group's net asset value grew by 6% during the first nine months to Rp 21.7trillion and the net asset value per share rose to Rp 5,360. The Group's net debt as at 30 September 2006 was Rp 9.5 trillion, compared to Rp8.3 trillion at the end of 2005. The Group's net debt, excluding net debt withinthe Group's financial services businesses, was Rp 4.0 trillion at the end ofSeptember (2005: Rp 2.6 trillion), representing a net debt to equity ratio of19% (2005: 13%). Dividend An interim dividend of Rp 150 per share (2005: Rp 100) was declared in Septemberand will be paid on 15 November 2006. Prospects While our markets remain challenging, there are signs of improvement and we areconfident that the medium-term prospects for the Group remain attractive. Michael D. Ruslim President Director 31 October 2006 NOTE Earnings per share GroupNine months ended 30 September 2006 2005 Basic earnings per shareNet income (Rp bn) 2,992 4,489Weighted average number of ordinary shares 4,048 4,048in issue (millions) Basic earnings per share (Rp) 739 1,109 Underlying earnings per shareUnderlying profit (Rp bn) 2,964 4,489 Basic underlying earnings per share (Rp) 732 1,109 A reconciliation of net income and underlying profit is as follows: Group Nine months ended 30 September 2006 2005 Change Rp bn Rp bn % Underlying profit 2,964 4,489 -34Gain on sale of investments 28 - n.a. Net income 2,992 4,489 -33 - end - For further information, please contact: PT Astra International Tbk Aminuddin, Corporate Secretary Tel: 62 - 21 - 6531 0418 This information is provided by RNS The company news service from the London Stock Exchange