Latinusa Eyeing IDR1.6 Trillion in Sales

Thursday 25/03/2010 00:00 WIB

Latinusa Eyeing IDR1.6 Trillion in Sales

JAKARTA: PT Pelat Timah Nusantara Tbk (Latinusa) targets sales for this year at IDR1.5 trillion-IDR1.6 trillion, rising 35.59% from last year's IDR1.18 trillion.

In the meantime, net profit is targeted at IDR91 billion, soaring 192.06% from last year's target of IDR31.5 billion.

Latinusa Financial Director Erwin revealed the subsidiary of PT Krakatau Steel last year recorded IDR41.99 billion in net profit, surpassing the target. Thanks to economic condition improvement, the company was even forecasted to book IDR31.5 billion in net profit in the first quarter of 2010 or the same as the net profit target for 2009.

"Last year, there were the effects of the global crisis in 2008 and the factor of raw material shortage. This year, such a factor of raw material shortage will no longer exist as we have secured raw material supply from our Japanese shareholders," told Erwin after the annual shareholders general meeting yesterday.

The Japanese shareholders are the consortium of Nippon Steel and three other companies, which are committed to securing raw material supply for Latinusa. Previously, Latinusa only relied on Krakatau Steel for supply.

The four Japanese companies bought a 55% stake in Latinusa from Krakatau Steel (KS) last year. The finalization of the transaction took place on December 14 or the same time the company made its initial public offering.

Pay dividend

Erwin added of last year's profit, Latinusa will pay a total dividend of IDR15.13 billion or IDR6 per share on May 5, representing 36.05% of the company's 2009 net profit. The dividend payment was decided at the annual shareholders general meeting yesterday.

The dividend payment boosted Latinusa share (NIKL) price yesterday by 11.11% to IDR300 yesterday, creating a market cap of IDR757 billion.

The general meeting also decided to add one director, making the board of directors to have five directors following the creation of a new position of vice-president director, which is currently held by Yosimitsu Honda.

The company, he continued, would also allocate IDR40 billion-IDR70 billion as capital expenditure this year. The capex, raised from the initial public offering (IPO), would be used to pay for down payment for revitalization project and to bolster the company's plant machinery capacity.

Therefore, the company currently is selecting the contractor to bolster its tin plate capacity from 130,000 tons per annum to 160,000 tons per annum.

So far, the company has been able to secure sales contracts of 60,000 tons, half of 120,000 tons targeted for this year. (Bisnis/iaa/pul)