Press Release

Padaeng Reports 1,040 Million Baht Profit from Operations

Padaeng Industry reported operational result of 1998 with 1,040 million baht profit from operations. Core business has continually improved. Total revenue from sales was 4,798 million baht, a 31% increase.

Today (3 March 1999) Padaeng Industry Public Company Limited reported its operational result of 1998 to the Stock Exchange of Thailand. The company's performance has greatly improved due to increased production and sales. Total revenue from sales was 4,798 million baht, 31% up from 3,651 million baht in 1997. Padaeng Industry's 1998 Financial Statement showed that the company's earning before depreciation, interest and abnormal items was 1,040 million baht. However, largely because of write downs and provisioning for losses of its subsidiary companies, the final result was a net loss of 303 million baht compared to a net loss of 2,218 million baht in 1997. The write downs made by the company in 1998 leave Padaeng with a stronger balance sheet and future results will more accurately reflect the operational performance of the core business.

Apart from incremental production and sales that gave improvement to its 1998 performance, the effect of the weaker baht, with a year-long average of 42 baht to 1 USD, meant higher revenue to Padaeng as the business was conducted in USD. In 1998, Padaeng's zinc cathode production of 97,963 metric tons was 7% higher than the 91,588 metric tons production of the previous year. The sales of zinc ingot and alloy were up 24% from 1997 with total sales volume of 96,026 metric tons in comparison with 77,659 metric tons in 1997. Domestic sales amounted to 50.5% while 49.5% was exported to overseas markets.