Krakatau Steel result, miss the target! - Insider Stories

PT Krakatau Steel Tbk (KRAS), Indonesia's largest steel maker, today reported a 114.83% jump in net income last year despite a 12.12% drop in net revenue.
In an official financial statement published today, KRAS booked Rp1.06 trillion net income last year from Rp494.67 billion in the previous year.

Income from operations skyrocketed 3,727.79% to Rp992.93 billion from Rp25.94 billion, sending a steep operating margin to 6.68% from 0.15%. Gross profit increased 87.39% to Rp2.23 trillion from Rp1.19 trillion.

's net sales dropped 12.12% to Rp14.86 trillion from Rp16.91 trillion, while the state-owned steel manufacturer narrowed its cost of goods revenue 19.77% to Rp12.62 trillion from Rp15.73 trillion. Without succeeding to drag down the cost, the company may be difficult to make a hefty growth last year.
Did Krakatau Steel make good and disappointed performance last year?
Below the target

During the first 9 months ended September 30 2010, Krakatau Steel booked Rp11.88 trillion revenue and Rp1.05 trillion net profit. Considering to the third quarter result, the company only booked additional revenue and net income of Rp2.98 trillion and Rp12 billion respectively in Q4 2010. The question is why Krakatau Steel only posted Rp12 billion net income in the last quarter?
Krakatau Steel's 2010 performance is also below the target set by its IPO underwriter PT Mandiri Sekuritas.

Based on the research, Mandiri Sekuritas estimated that Krakatau Steel could post Rp17.69 trillion revenue and Rp1.37 trillion by the end of 2010. It means the state-owned steel producer needs to add Rp5.81 trillion additional revenue to meet the target, which is impossible.
Krakatau Steel also needs Rp320 billion additional net profit to reach Rp1.37 trillion target this year. It is impossible for the company could fulfill the target.

Mandiri Sekuritas estimates that Krakatau Steel could post Rp25.22 trillion revenue and Rp1.38 trillion net profit in 2011. The company needs strong efforts to lift up its consolidated revenue by 42.56% to fulfill the target. Is it possible? I have written a story of KRAS which is impossible to meet the target on November 7 2010. Please login to read a full version of Watch Krakatau Steel 3Q net profit