The slight decline in Astra International’s overall net profit was attributed to lower earnings in its automotive and infrastructure & logistics divisions. On the other hand, the company recorded improved earnings in its agribusiness, contract mining operations and financial businesses divisions. Meanwhile, Astra International booked a 4 percent (y/y) growth in revenues to IDR 201.7 trillion (USD $15.7 billion).

Prijono Sugiarto, President Director at Astra International, said in a statement that the company’s cost of revenue climbed 2.72 percent (y/y) to IDR 162.89 trillion (USD $12.7 billion) attributed (partly) to higher general as well as administrative expenses and impairment losses on the company’s mining properties. The statement further mentioned that Astra International controlled IDR 236.03 trillion (USD $18 billion) in assets at end-2014, while liabilities reached IDR 115.71 trillion (USD $9.0 billion) and equities at IDR 120.32 trillion (USD $9.4 billion).

Astra International's Net Income per Business Segment:

Business Segment     2013
    2014   Change
Automotive    9,829    8,480    -13.7%
Financial Services    4,273    4,748    +11.1%
Heavy Equipment & Mining    2,971    3,268     +10%
Agribusiness    1,435    1,995     +39%
Infrastructure, Logistics & Other     748     490    -34.5%
Information Technology     161     200    +24.2%
Total   19,417   19,181      -1.2%

in billion of IDR rupiah
Source: Astra International, Financial Report 2014

Astra International's Financial Highlights:

     2008     2009     2010     2011     2012     2013     2014
Net Revenue   97,064   98,526  129,038  162,564  188,053  193,880  201,700
Net Profit    9,191   10,040   14,366   17,785   19,421   19,417   19,180
Total Assets   80,740   88,938  113,362  154,319  182,274  213,994  236,030
Total Liabilities   40,163   40,006   54,559   78,481   92,460  107,806  115,710

in billion of IDR rupiah
Source: Astra International, Financial Report 2014

Sugiarto added that the company remains cautious about the immediate outlook given the uncertain external macroeconomic environment in Indonesia, increased competition in the car market and the likelihood of a continuation of lower coal prices. However, as the group is well financed and delivers quality products and services it has solid prospects over the longer term, particularly as economic growth in Indonesia is estimated to accelerate.

Astra International, controlled by the Hong Kong-based Jardine Matheson Group, is particularly known for its dominating role in Indonesia’s automotive sector. Through a jointly-controlled entity with Japan’s Toyota Motor Corporation, the company holds the exclusive right to distribute Toyota vehicles - the most popular car brand in Southeast Asia’s largest economy - on the Indonesian market. In 2014, Astra International held a 51 percent market share in terms of car sales in Indonesia. However, over the past decade the company’s market share has been declining due to increased competition in Indonesia’s car industry, triggering discount wars hence limiting profitability.

Several notable subsidiaries of Astra International are:

 Astra Otoparts (automotive components)
Astra Agro Lestari (palm oil)
Serasi Autoraya (car rental services)
Astra Graphia (document information & communication technology)
United Tractors (heavy equipment)

The company submitted its corporate earnings report to the Indonesia Stock Exchange (IDX) a few minutes after trading had ended on Thursday (26/02). However, speculation that earnings were weaker than in the previous year led to its shares declining 1.2 percent to IDR 8,050 per share on Thursday. Today, after investors have been able to study the report, the decline continued. Astra International’s shares were down 2.17 percent to IDR 7,875 at 10:30 am local Jakarta time on Friday (27/02).

Stock Quote Astra International - ASII:

Astra International's stock chart shows a sharp fall in early June 2012 as the company conducted a 1:10 stock split, thereby making the company's shares more affordable and increasing its liquidity