Apr 13, 2011

Titan Kimia sells BOPP unit to Lotte

BOPP film maker PT Titan Kimia Nusantara Tbk (FPNI) has determined to sell a unit company of BOPP maker to an affiliated firm PT Lotte Packaging as the unit was in net loss for 3 consecutive years.
Regarding to the sale and purchase agreement, Titan Kimia on April 11 has entered into the agreement with Lotte Packaging, revealed an official statement published today.
The sale of biaxially-oriented polypropylene (BOPP) maker has been approved by Titan Kimia's board of commissioner on April 7 and should consider Bapepam-LK regulation on affiliated transaction and conflict of interest.
Titan Kimia suffered US$22.81 million net loss last year, a 180.17% plunge from US$28.45 million net profit in the previous year as cost of goods sold (COGS) was higher than net sales.
In a financial statement last year submitted to Indonesia Stock Exchange (IDX), the company also suffered US$16.26 million operating loss, a 147.10 million drop from US$34.52 million operating profit.
Titan Kimia returned to gross loss of US$1.33 million from US$49.29 million gross profit, reflecting a 102.69 drop.
COGS widened 26.19% to US$429.69 million from US$340.51 million, while net sales grew 9.89% to US$428.36 million from US$389.81 million.

Disclosure: No position at the stock mentioned above.

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