Besides weak heavy equipment sales, disappointing corporate earnings of Astra International in Q1-2016 were also caused by the bleak mining sector, while in the automotive sector the contribution of Toyota car sales also declined. The automotive segment is the largest contributor to Astra International's earnings and therefore declining sales have a large impact on the company's overall financial figures. Astra International's automotive business experienced a 3 percent (y/y) decline in profit to IDR 1.58 trillion in Q1-2016. Through a jointly-controlled entity with the Toyota Motor Corporation, Astra International holds the exclusive right to sell Toyota vehicles on the Indonesian market (Toyota being most popular car brand in Indonesia's wholesale car market).

Prijono Sugiarto, President Director of Astra International, said the Astra Group remained under pressure in the first quarter of 2016 due to weak demand for cars, low commodity prices and slowing corporate credit disbursement of its financial services unit Bank Permata. These challenges are likely to stay in the foreseeable future.

Regarding the staggering 168 percent (y/y) growth in net profit to IDR 418 billion of palm oil unit Astra Agro Lestari, Sugiarto said this growth is caused by profit obtained from the appreciating rupiah exchange rate toward its US dollar-denominated monetary liabilities.

Astra International's Corporate Earnings:

Q1-2016 Change
Net Revenue   45,187   41,887    -7%
Net Income    3,992    3,112   -22%
Net Earnings per Share¹      99      77   -22%
Net Asset Value per Share¹    2,521    2,588    +3%

in billion of IDR rupiah
¹ in rupiah

Source: Astra International

Astra International's Net Income per Business Segment:

Business Segment Q1-2015
Q1-2016 Change
Automotive    1,621    1,580    -3%
Financial Services    1,191     641   -46%
Heavy Equipment & Mining     983     442   -55%
Agribusiness     124     333  +168%
Infrastructure, Logistics & Other      36      82  +128%
Information Technology      37      34    -8%
Total    3,992

in billion of IDR rupiah
Source: Astra International