Jardine Cycle & Carriage profits up 16% to $1.07b in 2017

Astra’s contribution to the profit rose 28% YoY to US$641m.

Jardine Cycle & Carriage’s profits accelerated by 16% YoY from $927.37m (US$701.7m) to $1.07b (US$811m) in 2017, thanks to improvements in most of its businesses and greater contribution from Astra.

According to its financial statement, Astra’s contribution to profit of $847.22m (US$641m) was up 28%. Underlying profit in the Group’s Direct Motor Interests was 25% lower at $165.23m (US$125m), whilst the Group’s Other Strategic Interests made a contribution of $45m (US$34m), 3% up.

Astra reported a net profit equivalent to $1.86b (US$1.41b) under Indonesian accounting standards, which 25% higher in its local currency. Net income from the group’s automotive division was down by 3% to $873.72m (US$661m). Improved earnings in the components business were more than offset by a decline in the car business following lower sales and discounting pressures arising from increased competition.

Results from the motorcycle business were relatively flat. The wholesale market for cars was little changed at 1.1m units. Astra’s car sales were 2% lower at 579,000 units, with its market share decreasing from 55% to 54%. The group launched 11 new models and 11 revamped models during the year.

Net income from the group’s financial services division increased to $370.11m (US$280m) from $77.99m (US$59m) in the prior year, due to a return to profitability at Permata Bank and improved earnings contributions from Astra Sedaya Finance, Federal International Finance and Asuransi Astra Buana.

Net income from the group’s heavy equipment, mining, construction and energy division increased by 47% to $440.16m (US$333m). United Tractors’ income surged 48% YoY to $707.2m (US$535m) thanks to stronger coal prices that led to its improved construction and mining businesses.

Net income from the group’s agribusiness division was flat at $158.63m (US$120m), whilst the infrastructure and logistics division reported a net loss of $22.47m (US$17m).

The information technology division’s profit was 1% higher at $19.83m (US$15m), whilst the property division’s profit was up 101% at $22.47m (US$17m).