Fajar Wisesa eyes IDR240 billion profit

PT Fajar Surya Wisesa estimates to record IDR240 billion in earnings this year, rising from IDR36.55 billion last year. In addition, the company's earning before interest, taxes, depreciation, and amortization (EBITDA) this year is projected at IDR575 billion, down from IDR533 billion in 2008.

In the meantime, the company's revenues are actually estimated to decline to IDR2.73 trillion from IDR3.02 trillion in 2008.
The company's reports to Indonesia Stock Exchange (BEI) yesterday showed the company's operating earnings margin this year was projected at 15.9%, up from 12.9% a year before. Furthermore, EBITDA margin for this year is targeted at 21.1%, jumping from 17.6% in 2008.

Fajar Wisesa secures a total financing of US$70 million to bolster production capacity, which is estimated to cost US$85 million. The loan is scheduled to be disbursed in the first quarter of next year.

The company buys a machine called paper machine number 5 (PM5), which has a capacity of 300,000 tons per annum, to produce corrugated medium paper (CMP). The company at the moment produces CMP with PM3 and PM7. The arrival of PM5 will bolster the company's production capacity to one million tons per annum. The machine is scheduled to start operation in the first quarter of 2010.
The company's liabilities shrunk from IDR1.83 trillion in 2008 to IDR1.39 trillion in the third quarter of 2009. Despite its ability to secure a loan of US$70 million, the company's debt-to-EBITDA and EBITDA-to-interest ratios were healthy at 3.2 times and 4.1 times, respectively, this year.