Bangkok--26 Jan--Sahaviriya Steel Industries
Successfully overriding the volatile industry cycle, SSI reported 2010 net profit of Bt.2.47 billion, up 94% y-o-y. It was also able to reverse all retained loss in Q1/2010. Key success factors were the company's commitment to transparency and good governance, high-grade product strategy, continual innovation in product and service quality, and effective cost reduction. Its two affiliates WCE and PPC, and TCRSS, JV company, also posted excellent results. With the acquisition of TCP under way, SSI expects to benefit from stable supply of raw materials that will enable it to achieve HRC production of to 3 million tons in 2012. While 2011 is starting off to be a good year with steel prices moving markedly upward.
Mr. Win Viriyaprapaikit, President of Sahaviriya Steel Industries PLC (“SSI”) reveals that in Q4/2010 the Company and its subsidiaries realized total revenues of Bt. 10.73 billion. Revenue from sales of hot-rolled coil was Bt. 10.52 billion, up 13% over Q4/2009 and net profit for the quarter was Bt. 76.8 million or earning per share of Bt. 0.01 For the full year 2010, the Company and its subsidiaries realized total revenues of Bt. 48.33 billion and revenue from sales of hot-rolled coil of Bt. 47.09 billion, up 43% y-o-y, and net profit of Bt. 2.47 billion, or earning per share of Bt. 0.19 “2010 was an excellent year for SSI as we successfully delivered an impressive result on a number of measures, including the record sales volume of 2.24 million tons, the record HSM production of 2.23 million tons, the record sales revenue of 47.79 billion baht, the 5th-highest annual net profit of Bt. 2.47 billion. The strong earnings really strengthened our balance sheet. We wiped out our retained loss in Q1/2010 and now have positive retained earnings. We intend to keep it that way and continue to deliver our shareholders’ return for years to come. This achievement was attributed to our commitment in transparency and good governance, our Premium Value Products Strategy which provided healthy margin and now accounted for 41% of total sales volume (high-grade 26% and unique product 15%), our continual innovation in product and service quality enabling us to secure 8 new customers while successfully delivering 14 new products into the market (8 new grades and 6 unique pro ducts), and our successful Cost-saving Program which resulted in Bt. 275.1 million baht in total cost saving.” Mr.Win added.
In addition, the Company’s jointly-controlled entity and subsidiaries posted positive operating results in 2010 and delivered good return to SSI. SSI has enjoyed direct benefits from Thai Cold Rolled Steel Sheet PLC (“TCRSS”), its jointly-controlled entity, through close marketing cooperation which helped boost sales volume up 32% up y-o-y. For the year 2010, SSI realized net profit from investment in TCRSS of Bt. 229 million. West Coast Engineering Co., Ltd. (“WCE”) also reported a net profit of Bt. 35 million and Prachuap Port Co., Ltd (“PPC”) realized a net profit of Bt. 89 million in 2010. In addition, the in-process acquisition of the Teesside Cast Products from Tata Steel Europe (the agreed purchase price is USD 500 million) will create stability in supply of raw materials to SSI essential in achieving the production volume of 3 million tons in 2012.
The Company is not only committed to successfully deliver returns for stakeholders, but also to continually engage in community, environment, and social responsibility activities through sustainable development approach ranking from educational and career development, environment conservation and preservation, health promotion, and religious and culture maintenance for the community as well as social activities to support the underprivileged people total 45 programs. In 2010, the Company received numbers of outstanding award at national level including honorable shield as the organization which achieved operations under Energy Promotion Project in Logistics Branch, Thailand Energy Award 2009, the Prime Minister’s Industry Award 2009 for Logistic Management, Thailand Best Employer for Labor Relations and Welfare Award without Federation of Labor Union’s category for the fifth consecutive year (2006-2010), an Environmental Governance Certificate, and the Certification for Corp orate Social Responsibility, Department of Industrial Works (CSR-DIW).
As for global steel industry outlook in 2011, steel price has increased rapidly since the beginning of the year and is expected to rise further due to rising cost of raw materials such as iron ore and coal. The Iron and Steel Institution of Thailand (ISIT) estimates that Thailand’s steel consumption will increase from 14 million tons to 15 million tons in 2011 (67% flat steel) while the Company expects that the domestic HRC consumption will increase to 6 million tons, contributed by 16 % growth of high-grade products, following recovery of down-steam industries such as automobile and parts, energy, and construction sector. SSI also expects 2011 profit to rise as steel market is improving.
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For more information, please contact Public Relations Department Sahaviriya Steel Industries Public Company Limited Khun Rungkan, Khun Numphung and Khun Padungsak Tel 02-238-3063 Ext.1327, 1302 and 1309