OPERATING RESULTS
16 August 1999
TP-MT-090/99 (FC126/99)
August 16, 1999
Subject: 1. Report on Comparative Operating Performance Between the 2nd Quarter of
1999 and 1998
2. Filing of Verified Financial Statements for the 2nd Quarter of 1999 and
1998
Attention: Director and Manager, SET
Enclosures: Verified Financial Statements and the Report of C.P.A. for the 2nd
Quarter of 1998 - 1999, 2 copies (1 Thai and 1 English versions)
Pursuant to SET regulations concerning Criteria, Conditions and Methods of
Preparation, Filing, and Reporting on Financial Status and Business Performance of
Listed Companies dated May 19, 1993 required for the company's clarification on
causes contributing to changes over 20 percent of business performances from the
previous operating period accordingly.
Thantawan Industry Public Co.,Ltd (THIP) therefore clarifies the major causes for
significant changes of business performances in the 2nd Quarter of 1999 as compared
with the same quarter in 1998 as followings:
1. Sales revenues had total decreasing amount of Bt. 82.74 million or taken as
34.29% due to following causes:
1.1 Sales revenues in U.S. dollars had decreased from amounting USD5.93 million
in the 2nd Quarter of 1998 to amounting USD4.17 million in the 2nd Quarter of
1999 or decreasing at 29.72%.
1.2 The average exchange rate of Baht to U.S. Dollar in the 2nd Quarter of 1999
was Bt. 36.82 per dollar and when compared with the same previous period was
at Bt. 39.80 per dollar had resulted in stronger value of Baht at rate of
7.49%. This had impact as the decreased revenues in Baht and contributed to
weakening competitiveness in terms of product pricing when compared with
competitors.
2. In consideration of comparative financial statements using Financial Common Size
Statement had shown that:
2.1 Cost of Good Sold had increased to 70.75% in the 2nd Quarter in 1999 from the
same previous year quarter at 62.02% due to some cost items were fixed costs
which did not vary in according to the decreased revenue amount.
2.2 Selling and Administrative Expenses had increased to 19.97% in 1999 from the
same previous year 2nd Quarter in 1998 at 15.72%.
3. With the impact of such above cited causes, therefore, had resulted to decreasing
Net Profit at only Bt. 11.29 million in the 2nd Quarter of 1999 in which decreasing
from the same period at Net Profit amounting Bt. 40.30 million or taken as
71.99%.
Please be informed accordingly.
Very truly yours,
(Mr. Pichai Tangwithetchit) (Mr. Phietoon Trivijitkasem)
Director Director
