August 10, 2007
Subject : Clarification of change in business operation results
To : The President
The Stock Exchange of Thailand
Thai Rubber Latex Corporation (Thailand) PCL. ("the company") had
net loss of Bt 62.86 million in Q2/2007, compare to net profit of Bt 11.99
million of Q2/2006. That is net profit decreasesBt 74.85 million or decreases
more than 20% of the same period last year.
This change in operation result is due to the followings;
The company has income from sales and services Bt 1,614.91 million,
decrease Bt 358.85 million or decrease 18.18%, because both sale price and
sale volume has been sluggish. Sale volume of latex decreases 14.15% as most
latex buyers still have latex stock carried from Q1/2007. Sale price is 7.75%
lower than that of the same period last year which is in line with rubber
price situation, causing lower profitability.
In Q2/2007 sale volume of rubber thread has been lower as most of
the customers also carry stocks from Q1/2007, pulling demand and price down.
In conclusion, the company and subsidiaries incur Bt. 96.93 million gross
margin, decrease Bt 81.04 million from last year. The selling and
administration expenses are Bt. 80.38 million, decrease Bt 33.89 million.
Interest expense is Bt. 34.80 million, decrease Bt. 6.65 million.
The company had set up Bt. 22 million provisions for doubtful
account of one customer which has been in the debt restructuring process with
the financial institution. And according to the accounting standard, the
company had marked to market the inventory with the expected future market
price. This incurs additional expenses of Bt. 34.10 million.