Krakatau reports higher sales, reduces losses
Wednesday, August 24 2016 - 01:58 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk said that higher sales volume in the first semester of this year combined with efficiency measures have allowed the company to enjoy positive operating profit and cut down net losses.
The company said in a statement last week that sales volume in the January-June period of this year increased by 39.59 percent to 1.1 million tons compared to 0.84 million tons in the corresponding period of last year.
The company said that higher sales came as the government started implementing large infrastructure projects, increasing demand for steel products.
Krakatau said that gross profit in the first semester of this year reached US$99.92 million compared to gross loss of $38.89 million, while operating profit was $26.69 million compared to operating loss of $103.68 million.
The company said that efficiency measures have allowed it to cut down cost of sales by 21.91 percent to $559.32 million in the first semester of this year.
Krakatau said in that in the first semester of this year, net losses dropped sharply to $87.55 million from $134.93 million in the corresponding period of last year.
Editing by Reiner Simanjuntak