Bangkok--Oct 6--Saha Thai Steel
Profit jumps 33%, with IPO target this year
Thaweesak Karuchit, Deputy Managing Director, Saha Thai Steel Pipe Public Company Limited, the country’s largest manufacturer and exporter of steel pipes; reveals that the company achieved a Baht 2,133.4 million revenue for the first 6 months of 2005. The main revenue of baht 1,979 million comes from its sales revenues, reflecting a 11.9% sales growth over the sales value of baht 1,769 million in the same period last year. Export sales to the US, Europe and Asia reach baht 870.8 million while domestic sales climb to baht 1,108.2 million.
Thaweesak revealed further that the company’s domestic sales has significantly increased and now accounted for 56%, up from 32%, of overall sales revenues. The main factors contributing to this success were its effective domestic marketing campaign and sales promotion programs which had generated additional customers’ orders. In addition, this sales increase also reduced the level of raw materials, in accordance with the downwards trend of steel price during the first half of the year. The company recorded Baht 214.5 million in net profit for the first 6 months of 2005, a 33 % increase over a profit of baht 161.2 million in the same period last year.
“The company is confident that its revenues will continue to grow in the second half of the year as we already secured an order of 10,000 tons worth Baht 300 million which we have delivered to a customer in the US in the third quarter. Moreover, the steel prices, particularly in Quarter 4, have continuously improved which will contribute to the company’s export profitability.” Thaweesak added.
Sahathai expects to launch its Initial Public Offering and list its shares in the Stock Exchange of Thailand this year. It hopes to raise fund for further expanding its domestic market and preparing for the government’s many infrastructure expansion projects. The company will increase its products offering and add values to existing product lines marketed under STS brand. It sets a domestic sales target of 4,000 tons per month in 2005, and 8,000 tons per month in 2006, from 2,000 tons per month in 2004. It will also invest in warehouses expansion and improvement of distribution channels. Internationally, it plans to penetrate Canada, Australia, EU and Latin American countries.
Saha Thai Steel Pipe Plc., was registered on April 1st, 1968 as the country’s first steel pipe manufacturer by the group of 30 furniture manufacturers. Later, the company had expanded its operation to produce steel pipes for various industries such as construction, automotive and furniture industries. Their products are black steel pipes, galvanized steel pipes and furniture steel pipes.
Currently, the company has become the country’s largest manufacturer and exporter of high-quality steel pipes with a registered capital of baht 600,000,000. The Thailand Prosperity Fund and the Government Pension Fund hold 20.1% and 10% shares in the company, respectively.
For more information, please contact
Grantarit Ketsumpan, Lakana Khwan-ngam
PR Consultant
Tel. 0 2511-2046-7 Fax.0 2938-2168 End.