REPUBLIKA.CO.ID, JAKARTA -- PT Krakatau Steel Tbk. (KRAS) booked a sales growth of three percent in 2013 to US$2,375,958 from US$2,307,870 in the year before.
"In the midst of rupiah instability Krakatau Steel recorded an increase in steel product sales in 2013," the company's president director Irvan Kamal Hakim said here on Monday.
He admitted that the company's sales value in 2013 had dropped due to pressure on the average sales price of the company's steel products such as HRC by 13.8 percent following the fall of the world's commodity prices.
"The drop in the average sales price of the company's steel products was in line with a decline in the price of steel in the international markets and rupiah rate declining tendency against the US dollar," he said.
Due to the drop in the average selling price of steel products, Irvan said, the company's gross profit declined by 21.9 percent to US$95.6 million in 2013 from that of 2012.
In terms of net profit-loss Irvan said recorded a loss which could be attributed to principal entity holder by US$13.0 million in 2013 or lower than US$20.4 million the year before.
"The loss is caused by loss of sales value of US$39.4 million due to rupiah depreciation and association entity;s loss of US$12.3 million," he said.
Irvan said the loss in association entity was mainly caused by PT Krakatau Posco (the joint venture business with Posco Korea) reaching US$11.49 as the joint venture company was still at a pre-production stage.
The company's total assets meanwhile were recorded at US$2.380 billion down 7.1 percent due to a drop in the cash and cash-equivalent value and business loans in line with the drop in revenues.
Supply efficiency has also caused the company's supply to drop to US$519.1 million or 20.4 percent annually.
"That has contributed to the decline in the company's total asset value," he said.
With regard to 2014 Irvan said the company has projected sales growth of 10 percent to 2.6 millions in line with increasing production and demand this year.
He said the company had prepared strategies to minimize pressure from fluctuations of rupiah exchange rate.
"The rupiah rate fluctuation has burdened the company," he said referring as an example to a consumer's order which was set at a certain rate but when delivery was done the rate had changed.
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