TMT records profit loss due to weaker market

TMT records profit loss due to weaker market

Thai Metal Trade Public Company Limited (TMT), a full-service steel service center in Thailand, announced its reviewed performance for the nine months ended 30th September 2005. The Company's sales grew 27.47 percent year on year in the first nine months to THB 5.22 billion ($126.76 million). However, the gross profit margin decreased 4.33 percentage points year on year to 6.41 percent due to sluggish product prices and higher costs. The Company reported a net profit for the first nine months of THB 143.94 million ($3.5 million), a decrease of 42.07 percent year on year. In Thailand, local hot rolled flat steel consumption in the first nine months of 2005 increased 15.76 percent year on year to 4.7 million metric tons. Consumption of hot rolled coil (HRC) in the Thai market is expected to slow in the last quarter of this year because of sluggish sales in the real estate industry. The average price of HRC in the third quarter of 2005 softened from the same period in 2004. This was a result of a decline in imports by China, as it was able to manufacture a higher amount of its own material. On the other hand, demand for TMT's new cold rolled products, steel pipe and C-Channel steel has been increasing and sales of these products accounted for 8.66 percent of the company's total sales. Additionally, the Company is in the process of constructing the second phase of the Wangnoi production and distribution facility located in Ayuthaya.