May 15, 2006.
Subject : Clarification of Operating Results of the Company and Subsidiaries
for the 1st Quarter of the Year 2006
To : Secretary General
The Office of Securities and Exchange Commission, Thailand.
The Union Mosaic Industry Public Company Limited has submitted the
company's consolidated Financial Statement for the 1st quarter and the period
of 3 months as ended March 31st, 2006, reviewed by certified auditor including
an explanation on the differences of operating results. The company reported
the revenue from sales of 636.4 million Baht a decrease of 26.4 percent from
the same period of the previous year of 865.4 million Baht. The loss of
13.6 million Baht from the same period of the previous year of net profit of
30.3 million Baht, due mainly to the following matters:
1. High cost of goods sold: cost of goods sold to total sales revenue
is 88.9 percent, which is higher than 87.6 percent of the same
period of the previous year, because of the increasing in raw
material price and energy price especially natural gas.
2. Selling and administrative expenses to total sales revenue is 13.2
percent, which is higher than 10.2 percent of the same period of
the previous year. The main reason is from the result of the
increase in oil price in transportation cost.
3. Interest expense increases 71.1 percent due to the increase in
interest rate. The company engaged in long-term loan for debt
restructuring and expansion at the rate of MLR-1% p.a.
Please be informed accordingly.
Yours sincerely,
(Miss. Paweena Laowiwatwong)
The Chairman of Executive Board of Directors
The Union Mosaic Industry Public Company Ltd.
