Report to SET

The Company's Performance Results in 1999

From the statements of profit and loss as of Equity Method, the company's 1999 sales revenue is the amount Bt4,436.06m which decreased from that of 1998 by Bt362m or equal to 7.55 %. Earning before depreciation, interest expenses, exchange loss and abnormal and/or extraordinary items amounted Bt997.781m. And earning before exchange loss and abnormal and/or extraordinary item totalled Bt326.41m or equal to 7.36 % of total sales. Due to the company's policy changed the accounting standard in 1998 to meet international standard, the company has written-off and depreciated the residue pond in the line with the actual useful life at the amount of Bt85.278m. After including the loss of on sale of securities totalled Bt69.894m, the company has a net profit of Bt179.528m or equal to Bt152.712m in the consolidated statement.

The much improved performance was due to the decrease in production cost and the lowering of administration expenses continuously in 1999. For the sales, the company changed product mix by decreasing ingot production from 73,716 tons to 73,710 tons and increasing the higher margin alloy production from 15,076 tons in 1998 to 21,653 tons in 1998. Interest expense is also lower in 1999. Although the company's 1999 sales revenue decreased due to the special 10,000 tons lot of export sales in 1998 which was carried forward from 1997 and the appreciation of Baht between 1998 and 1999 from 42 Baht/USD to 38 Baht/USD, the company still made a profit at the satisfactory level.