JAKARTA (Indonesia Today) – Steel producer PT Krakatau Steel (KRAS) Tbk booked net profit of Rp107.1 billion in the first half of 2012, fell 90% from the corresponding period of 2011.
The company suffered from squeezed margin as sales revenue actually increased 31% to Rp11.02 trillion, but cost of sales jumped 35% to Rp11.16 trillion. As a result, the company’s gross profit declined to Rp860 billion, while operating profit down to Rp212 billion.
Financing costs, meanwhile, grew substantially by 63% to Rp252 billion. In the same period last year, Krakatau Steel booked extraordinary gain of Rp1.09 trillion from the transfer of fixed assets.
Krakatau then posted earning per share of Rp7 in the first half of 2012.