Bangkok--12 Nov--TUF TUF reported that Q3 sales in US dollar term rose 4% from last year to US$ 430.3 million. Despite a very challenging environment, the firm managed to stay profitable thanks to effective cost control and productivity improvement. With the toughest period nearly over, the company looks forward to improved performance for the rest of the year. Thai Union Frozen Products PCL. (TUF), Thailand's largest processor and exporter of canned and frozen seafood, reported its third-quarter operating results for 2007. Sales in US dollar term grew by 4% to US$ 403.3 million from US$ 389.2 million during the same period a year ago. Sales, in Thai baht term, however dropped 6% from Bt 14,635.9 million from a year ago to Bt 13,723.6 million. Total quarterly revenues stood at Bt13,794 million, down 6% from Bt14,750.5 million, with net income at Bt 422.4 million (equivalent to EPS of Bt 0.48) which represented 34% decline from Bt 635.4 million recorded a year ago. Mr. Thiraphong Chansiri, president of TUF, explained, “Quarterly sales growth in US dollar term from a year ago might look minimal. This is really thanks to a very strong performance across all product lines a year ago. Further, Thai Baht was more stable then. All of these helped boost our margin to a high level in the third quarter of 2006. As for the third quarter this year, the business environment had been much more challenging and uncertain. For instance, Thai baht (vs. US dollar) was 9% stronger than a year ago. To make it worse, tuna raw materials also became short during the period. That caused tuna prices to shoot up to a record high of US$ 1,600 / ton. We were affected by these unfavorable factors but we responded well and managed to keep our operating margin to the same level as seen in the earlier quarter. Bear in mind that the situation in the third quarter was much tougher than in the second quarter. This achievement proved our capability to control cost and improve efficiency on the continual basis. Over the first 9 months, we generated sales amounting to US$ 1,161.2 million, representing 7% increase from US$ 1,086.3 million during the same period last year, which I considered quite satisfactory.” With regards to the quarterly sales breakdown by product, tuna products accounted for the biggest share of 47%, followed by frozen shrimp 22%, canned seafood 9%, canned pet food 8%, shrimp feed 6%, domestic products 5% and frozen cephalopod 3%. Major export markets remained the United States, Japan and the European Union, followed by Oceania, Asia, Africa, Middle East, Canada and South America respectively. “In the third quarter, we could have delivered a stronger performance. Normally, the third quarter is our peak season of the year. However, temporary tuna shortage during the period did postpone some of our shipments to the fourth quarter. In other words, we expect recovering performance in the rest of the year as tuna catching is also improving at the moment and tuna prices started to fall. Moreover, our recently acquired fishing fleet had just delivered its first load of tuna fish (over 1,800 tons) in early November. All added up to a more positive outlook in the months to come. As a result, more shipments should be seen going forward, that would also be supported by a relatively stable Thai baht. JTEPA has become effective since November 1, 2007. That should provide immediate benefits to our shrimp products as the import duty will be lowered from the normal level of 5% to 0%. For tuna products, the duty will be gradually reduced to 0% within next 5 years. We are just convinced that business should improve going forward.,” concluded the president. Recently, Thai Rating and Information Services Co., Ltd. (TRIS) also re-affirmed TUF’s corporate and debenture credit rating at A+ (stable outlook) after its regular annual review. The unchanged credit rating proved TUF’s business strength and solid financial position. Corporate Communications Department Tel: (662) 298-0024 ext. 675 - 678 Fax: (662) 298-0024 ext. 679 Email: [email protected]