Asia / Oceania
Holcim boosts dividend payout
Apr, 16 2012
(Indonesia) -- Holcim Indonesia, the nation’s third-biggest cement maker, plans to distribute Rp 425 billion ($46 million) in dividends, or the equivalent of 40 percent of its 2011 net income, its chief executive has said.
“This plan has received approval from shareholders,” Eamon Ginley, the president director of Holcim, said on Friday. That would be equivalent to a dividend of Rp 55 per share, he added.
Holcim posted Rp 1.06 trillion in net income last year.
The 2011 dividend distribution increased from 2010, when the company distributed 23 percent of its net income as dividends, which was equivalent to Rp 193 billion. The company had Rp 848 billion in net income in 2010.
Separately, Holcim also plans $200 million in capital expenditure for this year. Some of that will be used to help finance the development of a new factory in Tuban, East Java.
“We are committed to completing the Tuban factory,” Ginley said.
Construction of the $450 million factory is 20 percent complete. It is designed to have an annual production capacity of 1.7 million tons of cement, and is scheduled to start operations in 2013.
The capital spending will consist of internal cash as well as debt financing. The company’s cash as of Dec. 31 stood at Rp 9.77 trillion.
Apart from continuing construction of the factory, Holcim will take control of the assets of one of its subsidiaries, Semen Dwima Agung, which owns limestone and clay sources in the same area as the Tuban plant. The move is to reduce expenses.
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