Bangkok--3 Aug--TATA Steel
TATA Steel (Thailand) Plc., Thailand’s leading long steel manufacturer company, reported positive business performance of the 1st quarter in fiscal year 2010-2011 (April — June 2010) by earnings profitability back of Bt28 million. The company recorded net sales of Bt6,194 million, occurred from the sales volume of 297,000 tons.
Mr. Laptawee Senavonge, President of TATA Steel (Thailand) Plc., said “The Company in the first quarter attributed improvement by earning a net profit of Bt28 million, representing an increase against the previous quarter (Q4/ 2009-2010) which registered a loss of Bt123 million. The main reason for the upturn was due to an increase of selling price by 1,800 Baht per ton, derived from the effective managing of the “spread” between input scrap prices and output product prices, improved product portfolio of higher percentage of wire-rods and higher export percentage to retain the domestic price levels. In this quarter, the Company recorded net sales of Bt6,194 million from the sales volume of 297,000 tons, representing a decrease of 5% and 13% respectively from the previous quarter. This was on the account of a poor new demand generation and impacts of the prolonged political uncertainty.”
“When compared to net loss of Bt168 million in Q1/2009-2010, the net profit in this quarter was increased by Bt196 million. The main reason was due to an increase of 37% and 12% in net sales and sales volume, respectively. The selling price was increased over than the increasing cost of goods sold.”, Mr. Laptawee added.
Mr. Laptawee disclosed “The overall market of long steel products in the coming 2nd quarter should improve from the 1st quarter as the political situation has been eased. However, several factors should be considered since Quarter 2 is raining seasonal period and construction projects normally slow down. In addition, government’s mega-projects have not been launched. TATA Steel (Thailand), therefore, will focus on increasing sales volumes of Low Carbon Wire Rods and Special Wire Rods. The Company will boost export volumes to Asean countries and others such as South Korea, China and Australia to substitute the low domestic demand. And as part of the business plan, the Company will manage manufacturing cost and other costs effectively.”
“The Company will utilize benefits of its Mini Blast Furnace (MBF) in Chonburi province which has been commencing operation since October last year and now on the process of production efficiency improvement. Due to very high raw material price, the Company has not yet realized much benefits of the manufacturing cost. However, a concrete advantage of MBF is to increase the production capability of special grade high quality steel to replace imports. This benefit will assist the Company to perform business in the future and to reduce risks caused by uncertain demand market of long steel products. As a result, TATA Steel (Thailand) will strive to develop higher quality of the special grade steel, but with lower manufacturing cost, as well as to develop new products soonest.”, added Mr. Laptawee.
For more information, please contact:
Mr. Sawai Kunentrasai
Department Manager
Corporate Communication & CSR Dept.
Tata Steel (Thailand) Plc.
555 Rasa Tower II, 20th Fl., Phaholyothin Rd.
Chatuchak, Bangkok 10900
Tel: 02 937 1000 Ext. 1610
Fax: 02 937 1223
Email:
[email protected]
Ms. Chanokpim Suriyajun
Corporate Communication Officer
Corporate Communication & CSR Dept.
Tata Steel (Thailand) Plc.
555 Rasa Tower II, 20th Fl., Phaholyothin Rd.
Chatuchak, Bangkok 10900
Tel: 02 937 1000 Ext. 1613
Fax: 02 937 1223
Email:
[email protected]