Apr 29, 2011

Krakatau Steel suffers 70% drop in profit

Indonesia's largest steel maker PT Krakatau Steel Tbk (KRAS) today reported a 69.69% plunge in consolidated net profit for the first quarter of this year because of higher cost of goods sold (COGS).
Krakatau posted Rp141.89 billion net profit or Rp9 per share in 1Q 2010 from Rp468.06 billion or Rp30 per share in 1Q 2010.
The company also suffered a 52.39% drop in gross profit to Rp422.26 billion from Rp886.92 billion as a result of higher cost of goods sold than net revenue growth.
Krakatau Steel's COGS was Rp3.81 trillion, a 7.93% increase from Rp3.53 trillion, while its net revenue increased 3.85% to Rp4.24 trillion from Rp4.41 trillion. Majority stake in Krakatau Steel is still controlled by the state. 

Disclosure: No position at the stock mentioned above.

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