Timah's net profit down by 40 percent in 2005

PT Timah Tbk, the world's biggest integrated tin producer, said on Monday net profit fell 40 percent in 2005 from the previous year due to lower global tin prices and higher production costs, Reuters reported on Monday.

Falling tin prices pushed state-run Timah's net profit for 2005 down to Rp 107.5 billion ($11.90 million) from Rp 178 billion. The firm's operating profit fell 26 percent to Rp 211.8 billion from Rp 285.1 billion in 2004, but sales revenue was up 21 percent to Rp 3.39 trillion from Rp 2.81 trillion during the same period.

The company said in a statement it produced 41,799 tonnes of refined tin in 2005, up 20 percent from 35,764 tonnes in the previous year.

The increased output led to higher refined tin sales of 42,227 tonnes, up 21 percent from a year before.

Tin is used in electronics, plating and the chemical sector and as a lead-free substitute in solder.

Timah's Bangka operations have a capacity to produce 47,000 tonnes of tin a year. (*)