November 14, 2006
Subject: Clarification of Operating Results of the Company and
Subsidiaries for the 3rd Quarter of the Year 2006
To: Secretar - 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 September 30, 2006 for the
three-month and nine-month periods ended September 30, 2006, reviewed by
certified auditor including and explanation on the differences of operating
results.
The company reported that the revenue from sales in 3rd quarter is 606
million baht, a decrease of 7 percent from 650 million baht of the same period
of previous year. For the nine-month period of 2006, the revenue from sales is
1,807 million baht, a decrease of 13 percent from 2,087 million baht of the
same period of previous year.
The company losses 15 million baht in 3rd quarter, resulted in total
loss of 73 million baht for nine-month period of 2006. Whereas, in 2005 the
company has profit of 8 million baht in 3rd quarter and total net profit of
40 million baht for nine-month period. The negative results are due to the
following matters:
1. The demand has been slow down since the end of last year; moreover,
big flood has occurred in many provinces of Thailand, resulting in
less demand of ceramic tiles, major revenue of the company.
2. The 3rd cost of production is 88 percent to sales revenues, higher
than that of 83% of previous year. Main reasons are higher raw
material cost, and energy price.
3. Interest expense of the 3rd quarter is 24 million baht, increases
44 percent from 17 million baht of the same period of 2005. For
nine-month period, interest expense is 66 million baht, increases
47 percent from that of 44 million baht in 2005. Higher interest
expense is due to an increase in interest rate which 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.
