August 15, 2006
Subject Clarification of Operating Results of the Company and subsidiaries
for the 2nd 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 as at June 30, 2006 for the
three-month and six-month periods ended June 30, 2006, reviewed by certified
auditor including and explanation on the differences of operating results.
The company reported the revenue from sales in Quarter 2 of 537 million baht,
a decrease of 0.3 percent from the same period of the previous year, and
resulted in net loss of 45 million baht. The revenues from sales in first
half of 2006 is 1,174 million baht, a decrease of 16 percent from the same
period of the previous year, and the company has reported the net loss of 58
million baht, due mainly to the following matters:
1. The demand in the industry has decreased due to high price of oil
and a rise of interest rate.
2. The percentage of cost of goods sold to revenues from sales is 91
percent, which is higher than 83 percent of the same period of the
previous year. The main reasons are from the result of an increase
in raw material price and energy cost of natural gas, fuel oil, and
electricity.
3. Interest expense increases 33 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,
(Paweena Laowiwatwong)
The Chairman of Executive Board of Directors
The Union Mosaic Industry Public Company Limited
