March 1, 2007
Subject: Clarification of Operating Results of the Company and Subsidiaries
for 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 year-ended as at December
31, 2006, audited by certified auditor including and explanation on the
differences of operating results.
The company had a net loss of 150.93 million baht for the year 2006
comparing to a net profit of 18.98 million baht for the year 2005. The change
was due mainly to the following issues:
1. The overall market situation has been stagnated due to a decrease
in real estate project of the government and private sector together
with big flood in many provinces in northern and northeastern region.
A considerable dropping in demand of ceramic tiles for new construction
and renovation was incurred especially in the second half of 2006.
The company's revenue from sales in 2006 was 2,308.23 million baht,
it was decreased by 13.72 percents comparing to that of 2,675.32
million baht in 2005.
2. For 2006, the percentage of cost of goods sold to sales revenue was
87.24 percent, it was increased by 2.68 percent from 84.56 percent
in 2005. And the higher fixed cost per unit was the main cause, which
was the result of the drop in the company's sales. Consequently, the
company has to reduce production volume in order to optimize cash
flow and inventory level.
3. Interest expense was 87.38 million baht in 2006, it was increased by
37.23 percent from 63.68 million baht in 2005. An increase in interest
expense was due to a rise of interest rate as the company engaged in
long-term loan for debt restructuring and capacity expansion at the
rate of MLR-1 percent 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.
