Dec 2, 2011

Krakatau Steel 9M operating profit drops

The state-controlled steel maker PT Krakatau Steel Tbk (KRAS) reported a steep drop in operationg profit of 80.29% for the period of ended September this year as a result of rising cost of goods sold and operating expenses.
In the financial statement filed to Indonesia Stock Exchange (IDX) yesterday, the company booked a Rp249.79 billion operating profit in 9M 2011 from Rp1.27 trillion in 9M 2010.
It seems uneasy for Krakatau Steel to control costs. Operating expenses rose 6.68% to Rp960.59 billion from Rp900.45 billion, while cost of goods sold increased 17.86% to Rp11.44 trillion from Rp9.71 trillion.
Krakatau's revenue only increased 6.53% to Rp12.65 trillion from Rp11.88 trillion. At the bottom line, 
Krakatau Steel reported a 3.26% increase in net profit to Rp1.05 trillion from Rp1.01 trillion. 
US$100 million loan
The company secured US$100 million loan facility from PT Bank DBS Indonesia on November 4 2011.
The facility can be used for import letter of credit, SKBDN, trust receipt, account payable financing, and export bill letter of credit. The facility will expire on November 4 2012.

Disclosure: No position at the stock mentioned above.

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