17th November 1998
BERLI JUCKER'S THIRD QTR PROFIT UP 70% TO THB127 MILLION
First Pacific Company Limited's flagship in Thailand, Berli Jucker Public Company Limited, announced today that consolidated net income for the third quarter increased 70 per cent to THB127 million, while total revenue declined 7.4 per cent to THB2,616 million, reflecting continued sluggish demand in the Thai economy.
Net profit before extraordinary items in the year's first nine months was virtually unchanged at THB311 million from THB310 million, while profit after extraordinaries was off 30 per cent to THB218 million, reflecting a previously reported charge in the second quarter related to the closing of the Company's glass factory project in Vietnam. Total revenue for the first nine months rose 3.1 per cent to THB8,275 million.
Berli Jucker's President David Nicol said: "I am pleased to report that Berli Jucker continues to trade profitably, despite the very difficult operating conditions faced by all companies in Thailand. With slightly weaker sales for the quarter than in 1997, our focus has been on the maintenance of margins, and keeping exceptionally tight controls on overhead expenses, and inventory and receivables levels."
The Consumer Products division reported a 5 per cent increase in sales for the third quarter, fuelled by the continued strength of the snack-food business, along with good confectionery and wine sales. Sales of paper products, however, suffered from a nationwide decrease in the consumption of tissue paper.
The Packaging Products division recorded a 14 per cent decline in sales due primarily to the slowdown in the energy drinks sector, which has been impeded by the declining size of the nation's construction and transport workforce which is the main market for such products. Sales momentum slowed for food containers, and demand for beer bottles temporarily dropped due to programs by customers to cut down inventory levels. However, beer bottle output is expected to be healthy for the remainder of the year. Berli Prospack, which produces rigid plastic containers, experienced slow sales, particularly for automotive-oil packaging.
The Technical Products Group recorded a 14 per cent fall in sales. Demand for photographic film and equipment remained weak in the retail and medical sectors. Similarly, sales slowed for medical products related to lower demand and spending in the hospital sector. Thai Klinipro, Berli Jucker's joint venture producing disposable medical gowns, announced the expansion of its production facilities during the quarter and faces good prospects amid strong potential export sales and the addition of disposable medical drapes to its product line.
The Engineering Group suffered a 51 per cent sales decline, primarily reflecting the slowdown and subsequent suspension of activities at Thai Scandic Steel, the company's engineering subsidiary which produces galvanized steel towers for the electricity and telecommunications industries. While activities remain suspended there pending Ministry of Industry permission to use steel that has already been imported and paid for to meet existing contracts, prospects are good for a positive resolution in the near future.
In conclusion, Mr Nicol said: "Following Berli Jucker's THB4 billion capital raising at the end of June, we have reduced our interest and currency hedging costs by cutting our medium-term U.S. dollar debt levels and now have a very healthy balance sheet. In addition, we have set aside approximately THB1.3 billion for future investment. Due mainly to significantly increased sales of glass containers I am confident we will finish 1998 on a positive note."
* * *
For further information, please contact:
| First Pacific Company Limited Robert Sherbin | Tel: (852) 2842 4380 |
| Executive Vice President Group Corporate Communications | |
| Berli Jucker Public Company Limited | |
| David J. Nicol President and CEO |
Tel: (662) 367 1024 E-mail: davidnicol@berlijucker.co.th |
| Blair Sinton Executive Vice President and CFO |
Tel: (662) 367 1026 E-mail: blair@berlijucker.co.th |
First Pacific Company's information can also be accessed on:
| Web Site: |
http://www.firstpacco.com http://www.irasia.com/listco/hk/firstpac |
E-mail: info@firstpac.com.hk |
| © Copyright 1996-2008 irasia.com Ltd. All rights reserved. Tel: (852) 2831-9792. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |