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    Jakarta, August 2005. PT Semen Cibinong Tbk (PTSC) today announced its audited results for the six months to June 30th, 2005.

    Compared to the same period in 2004, net sales revenues showed a substantial improvement by 27.5% to Rp 1,410 billion (2004: Rp 1,106 billion) based on cement and clinker sales volume growth of 14.6% and a surge in ready- mix concrete and aggregate net sales revenue of 59.3%. Market share was up from 15.5% to 16.0% through a combination of brand building,improved production and sales management, a successful new product “Semen Serba Guna” launch in April and prudent price management.

    Tim Mackay, President Director of PTSC, commented “This result already surpasses the level of 9% volume growth for the entire cement sector as a whole this year according to theCement Industry Association. Our cost and production improvement programmes are working well, despite increased energy costs. We have continued to manage reduction of our thermal energy costs by, among other things, burning alternative fuels including disposable biomass, thereby conserving fuel. We are using our clinker more efficiently by inter-grinding mineral components.”

    Part of the increased demand for PTSC’s bagged cement is due to the launch of a new multipurpose cement, Semen Serba Guna, with bagged cement sales volumes up 30% month on month in May 2005. Bulk cement sales have been driven higher by the expansion of the company’s ready- mix business.
    Although fuel prices have impacted the company’s operational performance, resulting in an operating loss of Rp 21.0 billion (2004: Rp 67.7 billion), the crucial indicator of EBITDA (Earnings before interest depreciation and amortisation) improved by 48.2 % to Rp 205.9billion (2004: Rp 138.9 billion) resulting in an increase in Operating EBITDA margin from 12.6% to 14.6%.

    The weakening of the Rupiah over the course of the first half linked to the fuel crisis, has resulted in higher translation and foreign exchange costs with respect to the company’s outstanding foreign currency debt. These increased other charges resulted in a net loss for the period of Rp 217.6 billion. Total debt in Rupiah terms was unchanged at Rp 4.7 trillion compared to the same period last year, however in USD terms reduced by USD 17.0 million mainly through debt repurchase program with max. price of USD 90 cents per USD 1 loan of Tranche “A” facilities.

    Chief Financial Officer, Thomas Dinkel commented, “We believe it is important to view these results in the context of our long term goals at PTSC. We are investing in change as wecontinue a major manufacturing review to make the company ready for future market expansion. Our priorities will continue to be focussed on unlocking the enormous potential in this market.”
    Tim Mackay added, “We are creating a sustainable business that will contribute not only to Indonesia’s high profile infrastructure programme as it gains momentum but improved living standards through housing. PT Semen Cibinong Tbk has signed a landmark memorandum for a private-public partnership to provide Aceh with low cost housing solutions and a dedicated advisory service. In addition to our substantial direct donations through KMS (Civil Society Coalition) to provide assistance in Aceh we have also partnered with GTZ, a German based NGO, and the Indonesian Institute of Architects to help the local community develop 5,000 new houses and, most importantly, generate the skills, income and business opportunities for local people across the tsunami affected region.

    Our planning horizons go beyond near term issues such as natural disasters and exchange fluctuations, to a very long term vision for balanced and sustainable growth.” Earlier this year Holcim Ltd, one of the world's largest cement manufacturers, together with its subsidiaries around the globe, donated CHF 1million for the Aceh Aid & Rehabilitation Programme.

    PT Semen Cibinong Tbk (PTSC) is an Indonesian publicly listed company where the majority shares (77,33%) are owned and controlled by Holderfin BV, a subsidiary of Holcim Ltd. PT Semen Cibinong Tbk is one of the largest cement producers in Indonesia with related businesses in ready-mix concrete, aggregates production and road transport. The company operates two integrated cement plants at Narogong,
    West Java and Cilacap, Central Java, with installed capacity of 8.3 million tonnes of clinker per year, employing 3,315 people.

    Source : www.semen-cibinong.com





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