Investor News

Clarification of Company’s performance for Quarter 3/2009
Date: 16 November 2009

13th November 2009

Re   :  Clarification of Company’s performance for Quarter 3/2009.

To   :   President
            The Stock Exchange of Thailand

The company would like to clarify her performance for Quarter 3/2009, details as follow;

In this quarter, the company continued to have a satisfactory operation under the sign of slightly recovery economy particularly around Asian region.  Total shipment under this quarter was 186,778 tons represented a slightly growth of 1 per cent from previous quarter and down only 7 per cent from Quarter 3/2008. The total sales turnover was 10,785 million Baht, an increase of 742 million Baht from last quarter but down by 46 per cent or 9,134 million Baht compared to the same period of last year. This was caused by the much lower selling price due to the collapse of commodity price that began in late Quarter 3/2008.  The average selling price in the said Quarter of last year was at the very high level particularly petroleum products, synthetic rubber and natural rubber.  The average price level in this Quarter was around 1,600-2,000 US Dollar per ton. It represented a decline of 42-45 per cent compared to same period of last year. Judging SICOM price level, the average price of Ribbed smoke sheet (RSS) and Block rubber (TSR) in Quarter 3/2008 were 2,984 and 2,972 US Dollar per ton respectively compared to 1,995 and 1,835 US Dollar per ton in Quarter 3/2009. The price has declined by 33-38 per cent per below table;

   Average
price (USD)            Quarter 3/2008                 Quarter 3/2009            Decrease          Decrease %
     RSS                           2,984                                  1,995                               -989                         -33%
     TSR                           2,972                                  1,835                            -1,137                         -38%

Compared to the previous Quarter, the average selling price has increased by 20 per cent.  This was due to continued demand recovery particularly Chinese market and those traditional consumers in developed countries.  Nevertheless due to the upward price movement that somewhat affected cost of raw material,  it has resulted in lower spread margin.  The gross profit margin in this quarter was 5 per cent equal to 546 million Baht. After deducting selling and administrative expenses, adding foreign exchange gain and other incomes, the Company had profit from operation 269 million Baht. Adding the sharing of profit from affiliated companies which had a very successful operation particularly Latex examination glove products, of 226 million Baht, deducting the financing costs of 83 million Baht and income taxes of 7 million Baht, the Company had net profit of 405 million Baht which belonged to majority  shareholder 395 million Baht.  It represented an increase of 74 per cent compared to 227 million Baht in the same period of last year.

For the overall 9 months performance of this year, the company managed to have the total sales turnover of 29,846 million Baht represented the decline of 40 per cent or 19,692 million Baht.  This was in line with the disruption of world economy since the late Quarter 3/2008. Most of commodities prices have collapsed since then including natural rubber. Nevertheless the management was able to manage the operation at the satisfactory level under such the negative circumstances.  The company was able to manage effectively in every aspect that resulted in higher market share, competitive raw material cost, lower various expenses including financing cost.  The gross profit margin had increased from 5.2 per cent to 6.7 per cent.  The net profit for 9 months period of this year was 959 million Baht compared to 1,032 million Baht in 2008, represented the decline of only 7 per cent.

Yours faithfully

Kitichai Sincharoenkul
Director