Report to SET

16/Aug/99
Company’s Performances in the Second Quarter and First-half of 1999

The company’s performances during the second quarter and first-half of 1999 are as follows :

(1) From the statements of income for the company only, in the second quarter of 1999, a net profit of Bt89.98m was recorded, compared to Bt177.76m net loss incurred in the same period of 1998, despite the lowered sales revenue by Bt94.27m or 8.4% due to the decline in LME price for zinc by US$52 per tonne. The outstanding result was attributed to a Bt34.40m exchange gain (which stemmed from the strengthening Baht) and acknowledgement of equity in undistributed net income of subsidiary and associated companies of Bt2.12m, coupled with having incurred a Bt134.97m loss on exchange and Bt132.55m acknowledged equity in undistributed net loss of subsidiary and associate companies in the same quarter of last year.

(2) The above-mentioned net profit was comparatively higher than that of the first quarter of this year by Bt68.53m or 319.6% despite a slight decrease in the sales revenue. This was attributed to the greater selling price due to higher LME price for zinc by an average of US$27 per tonne, coupled with the reduced cost of sales (4.75%) at more favorable rate than the lowered sales revenue (0.59%). In fact, apart from having an exchange gain in this second quarter as referred above, there was a loss on exchange (Bt28.67m) in the first quarter.

(3) The net profit in the first half of 1999 amounted to Bt111.42m against Bt465.29m net profit recorded in the same period of 1998 due to much decreases in the sales revenue and gain on exchange. In addition, there were new expenses for a total of Bt17.51m arisen from a filled up residue pond written off and depreciation adjustment for the existing residue ponds in order to recognize actual life.

(4) From the consolidated financial statements, the net profit in the second quarter of 1999 totalled Bt78.55m compared to a net loss of Bt177.76m in the same quarter of 1998 and Bt3.33m in the first quarter of this year. The total net profit in the first 6-month period of 1998 was equal to Bt75.21m.