Bangkok--1 Aug--Master Mind Communications
Polyplex Thailand Public Company Limited or PTL reports profit reduction caused by the current oil price hike and pressure on margins caused by excess supply situation in the market. Company executives cite that the incident is a normal occurrence in a cyclical industry, adding that reducing production costs, expanding production lines and a higher value added product mix will be the key strategies in strengthening the firm’s business position in the long-run.
Polyplex Thailand Public Company Limited (PTL) has announced the company’s performance during the first quarter of its fiscal year 2006 (April—June), saying the net profit of PTL declined sharply against the corresponding period a year ago mainly due to declining margins in the cyclical down trend in the industry brought about by large increase in installed capacity. Rising prices of raw materials triggered by soaring oil prices around the globe have also impacted the company.
Manish Gupta, Director and General Manager (Commercial) of Polyplex Thailand Public Company Limited or PTL stated that “PTL remains strong compared with other operators within the same industry because of the ability to control the production costs. In addition, the company is planning to add production lines for extrusion coating, which should contribute positively to the performance in the long-run,” he explained.
He added that the situation of his company was looking to improve in the long-run since a production facility in Turkey, where the company invested in 2005 has reached 90% of its production capacity. “PTL has already started to realize income from such a production facility in Turkey since the first quarter of this fiscal year,” he said.
“Despite lower profit ratio, PTL remains strong with the ability to control costs with both forward integration and backward integration.” he said. In addition, PTL will follow the policy that encourages new product manufacturing in order to seek greater profit returns and lower the risks that are attached to the PET film business.
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