In 9M/2009, companies listed on The Stock Exchange of Thailand (SET) posted aggregate net profits of THB 323.94 billion (approx. USD9.76 billion) and total sales of THB4.50 trillion (approx. USD135.77 billion), while Q3/2009 performance recorded an increase of 24% over the same period last year. The top three industry groups were, in descending order of profitability, Resources, Financials, and Property and Construction Industry Groups. The top five firms, in descending order of profitability were PTT, SCC, PTTEP, SCB, and BBL.
As of September 30, 466 of 500 SET-listed companies, including 25 property funds, had reported their operating results for 9M/2009, with aggregate net profits of THB323.94 billion (approx. USD9.76 billion), a 17% drop year-on-year (y-o-y). Among those which submitted their reports, 353 companies posted net profits, while 113 reported net losses - a 76:24 ratio. Total net profits in Q3/2009 were THB115.10 billion (approx. USD3.47 billion), a 24% year-on-year (y-o-y) increase, revealed SET President Patareeya Benjapolchai.
“If we look at the overview picture of SET-listed firms’ quarterly performance from Q1/2009-Q3/2009, it shows continual improvement in their operating performance. The total net profit in Q2/2009 was at THB124.20 billion (approx. USD3.74 billion), a 51% increase over Q1/2009’s net profit of THB82.46 billion (approx. USD2.48 billion). The operating performance decreased slightly in Q3/2009, which recorded a total net profit of THB115.11 billion (approx USD3.47 billion), 7% down over Q2/2009.
“Meanwhile, SET-listed firms recorded a consistent rise in total sales. Total sales in Q2/2009 increased 12% over those of Q1/2009, while Q3/2009 sales increased 9% over those of Q2/2009. This record shows the strength and potential of listed companies even though they had to confront with economic crisis,” noted Ms. Patareeya.
SET100 Index companies’ Q3/2009 net profits was at THB97.30 billion (approx. USD2.93 billion), or a 22% increase y-o-y, while 9M/2009 net profits was at THB287.56 billion (approx. USD8.66 billion), accounting for 89% of total net profits of SET-listed firms, or a 15% decrease (y-o-y), with total sales dropping by 24%. Meanwhile, cost of sales recorded a 27% drop, resulting in an increase in gross profit margin to 20%, from 17%.
The top five most profitable stocks, in descending order, were PTT PCL (PTT), The Siam Cement PCL (SCC).PTT Exploration and Production PCL (PTTEP), The Siam Commercial Bank PCL (SCB), and Bangkok Bank PCL (BBL).
The 448 listed firms in the eight industry groups (excluding companies in the non-compliance and non-performing groups) saw total net profit in 9M/2009 of THB323.41 billion (approx. USD9.75 billion), a 17% decrease y-o-y. The operating performance in Q3/2009 showed the net profit of THB114.27 (approx. USD3.44 billion), a 23% increase y-o-y. The Resources, Financials and Property and Construction are the industry groups with the highest net profit.
In order of descending net profitability, the industry groups’ 9M/2009 results are as follows:
1. Resources Industry Group: (consisting of the Energy and Utilities and Mining sectors) This group’s combined net profit was THB129.20 billion (approx. USD3.90 billion), a 16% drop y-o-y. Meanwhile, Q3/2009 net profit recorded a 75% increase over Q3/2008, which recorded net profit of THB40.04 billion (approx. USD1.20 billion)
2. Financial Industry Group: (consisting of the Banking, Finance and Securities and Insurance sectors) This group’s combined net profit was THB76.08 billion (approx. USD2.30 billion), a 4 % decrease y-o-y. Meanwhile, Q3/2009 net profit recorded a 10% increase over Q3/2008, which recorded net profit of THB28.39 billion (approx. USD855.49 million)
3. Property and Construction Industry Group: (consisting of the Property Development and Construction Materials sectors, plus Property Funds) This group’s combined net profit was THB46.52 billion (approx. USD1.40 billion), a y-o-y increase of 3%. Meanwhile, Q3/2009 net profit recorded a 39% increase over Q3/2008, which recorded net profit of THB17.75 billion (approx. USD534.82 million)
4. Technology Industry Group: (consisting of the Information and Communication Technology and Electronic Components sectors) These firms’ combined net profit was THB30.15 billion (approx. USD908.37 million), a y-o-y decrease of 18%. Meanwhile, Q3/2009 net profit recorded a 5% increase over Q3/2008, which recorded net profit of THB10.35 billion (approx. USD311.99 million)
5. Agro and Food Industry Group: (consisting of the Food and Beverage and Agribusiness sectors). This group’s net profit was THB21.15 billion (approx. 637.21 million), a 32% increase y-o-y. Meanwhile, Q3/2009 net profit recorded a 48% increase over Q3/2008, which recorded net profit of THB8.65 billion (approx. USD260.73 million).
6. Services Industry Group: (consisting of the Commerce, Health Care Services, Media and Publishing, Professional Services, Tourism and Leisure, and Transportation and Logistics sectors). This group posted a combined net profit of THB17.09 billion (approx. 514.99 million), a decrease of 7% over 9M/2008. Meanwhile, Q3/2009 net profit recorded a 65 % decrease over Q3/2008, which recorded net profit of THB2.60 billion (approx. USD77.41 million)
7. Consumer Products Industry Group: (consisting of Fashion, Home and Office Products, Personal Products and Pharmaceuticals sectors) This group posted a net profit of THB 3.64 billion (approx. USD 109.74 million), a y-o-y decrease of 12%. Meanwhile, Q3/2009 net profit recorded a 3 % increase over Q3/2008, which recorded net profit of THB1.34 billion (approx. USD40.50 million)
8. Industrials Industry Group: (consisting of the Automotive, Industrial Materials and Machinery, Packaging, Paper and Printing Materials and Petrochemicals and Chemicals sectors) This group’s combined net loss amounted to THB405 million (approx. USD12.20 million), a decrease y-o-y, which recorded net profit of THB38.16 billion (approx. USD1.15 billion). Meanwhile, Q3/2009 net profit recorded a 25 % decrease over Q3/2008, which recorded net profit of THB5.15 billion (approx. USD155.09 million)
Friday, November 20, 2009
Sunday, November 8, 2009
Kitchenware-maker sees Afta export boost
Satien Stainless Steel, manufacturer of Zebra stainless-steel kitchenware, says it will take advantage of the Asean Free Trade Agreement to increase its export value next year.
"I foresee Afta as a positive factor for my business, as Zebra cancompete in the world market and increase vevenue from the export market," said vice chief executive Ekachai Youngvanich.
However, he said export revenue might not rise sharply, because other Asean countries had measures to protect their local businesses. The baht is also expected to continue fluctuating, and Thai products might lose competitiveness to their rivals because of this.
The company targets increasing the export proportion of its revenue next year by 5-10 per cent, from 30 per cent now, thanks to advantages arising from Afta and plant expansion.The company's major export markets are in Southeast Asia: the Philippines, Indonesia,Singapore and Vietnam, It will expand to new markets in areas including Africa next year, because of the huge potential for growth.
Satien Stainless Steel is spending Bt200 milliion to expand its existing plant by 10,000 square metres. This will boost production capacity 10-15 per cent from the current 6,000 tonnes per year. It expects to run at the new full capacity by the middle of next year.
Ekachai said that although other kitchenware brands could enter the Thai market, Zebra was not worried about competition from international brands. Most of them are targeted at the low end of the market, while Zebra is strong in the premium market.
In Thailand, the company plans to expand into the catering market, in order to widen its clients from hotels and restaurants. Caterers currently provide only 5 per cent of company revenue.
Ekachai said Zebra would set up a sales team to boost sales in this segment.
"I foresee Afta as a positive factor for my business, as Zebra cancompete in the world market and increase vevenue from the export market," said vice chief executive Ekachai Youngvanich.
However, he said export revenue might not rise sharply, because other Asean countries had measures to protect their local businesses. The baht is also expected to continue fluctuating, and Thai products might lose competitiveness to their rivals because of this.
The company targets increasing the export proportion of its revenue next year by 5-10 per cent, from 30 per cent now, thanks to advantages arising from Afta and plant expansion.The company's major export markets are in Southeast Asia: the Philippines, Indonesia,Singapore and Vietnam, It will expand to new markets in areas including Africa next year, because of the huge potential for growth.
Satien Stainless Steel is spending Bt200 milliion to expand its existing plant by 10,000 square metres. This will boost production capacity 10-15 per cent from the current 6,000 tonnes per year. It expects to run at the new full capacity by the middle of next year.
Ekachai said that although other kitchenware brands could enter the Thai market, Zebra was not worried about competition from international brands. Most of them are targeted at the low end of the market, while Zebra is strong in the premium market.
In Thailand, the company plans to expand into the catering market, in order to widen its clients from hotels and restaurants. Caterers currently provide only 5 per cent of company revenue.
Ekachai said Zebra would set up a sales team to boost sales in this segment.
Makeover for M&S as profits stay flat
Marks and Spencer will begin selling grocery and household products featuring top brand names across all of its stores in Britain alongside its ownlabelled goods.
Alongside news of flat first-half profits,Marks and Spencer said it would break with tradition and start selling products such as Coca-Cola fizzy drinks, Kelloggs cereals and Persil washing powder in a bid to improve sales.
"Marks & Spencer announces today that it is to sell a selected range of around 400 branded grocery and household products in all of its UK stores," the company said in a statement.
Company chairman Stuart Rose said the change would make it "so much more convenient" for customers to purchase their goods in just one shop.
The announcement comes as M&S said net profits rose just half-a-percent to ฃ224.3 million during the first six months of its financial year.
Alongside news of flat first-half profits,Marks and Spencer said it would break with tradition and start selling products such as Coca-Cola fizzy drinks, Kelloggs cereals and Persil washing powder in a bid to improve sales.
"Marks & Spencer announces today that it is to sell a selected range of around 400 branded grocery and household products in all of its UK stores," the company said in a statement.
Company chairman Stuart Rose said the change would make it "so much more convenient" for customers to purchase their goods in just one shop.
The announcement comes as M&S said net profits rose just half-a-percent to ฃ224.3 million during the first six months of its financial year.
Johnson & Johnson to tighten belt
Johnson & Johnson said on Tuesday it would trim layers of management, cut thousands of jobs, and set other restructuring moves in order to save up to $900 million next year.
The New Jersey-based company said the cuts would affect 6 to 7% of its global workforce of roughly 118,700 workers,or potentially more than 8,000 jobs.
The lay-offs will prompt a restructuring charge of up to $1.3 billion pretax in the fourth quarter. Still, the company confirmed adjusted profit guidance between $4.54 and $4.59 per share for 2009.
Johnson & Johnson plans to simplify its business structure and projects that it will save between $1.4 billion and $1.7 billion annually after the restructuring is complete in 2011.
The company, the world's most diversified health-products maker, saw its revenue fall 5% in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax.
Chairman and CEO William C. Weldon said the moves were meant to position the company for long-term growth in an evolving, and sometimes turbulent,market.
"These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson," he said."We recognise their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."
The new restructuring programme comes on the heels of management's decision to reorganise its comprehensive care business in August. That unit was created under a 2008 restructuring programme with the goal of boosting sales,though sales were down during the first half of 2009. The unit makes medical devices and tests.
"When you look at the total economic environment, I don't think anybody knows what's going to happen," Weldon said."But nobody expects it to come back tomorrow."
He said the move was based on a broad, global view of the changing healthcare industry, taking into account national and international markets. As for health care reform, management has said it needs more clarity on what any future plan could look like before assessing a more concrete impact on the business."The restructuring programme is also not a move to centralise J&J's operations," Weldon added.
"We're trying to make sure we've really set ourselves up for the future," he said."We have such a rich portfolio that we have to make sure we have the resources to invest."
The New Jersey-based company said the cuts would affect 6 to 7% of its global workforce of roughly 118,700 workers,or potentially more than 8,000 jobs.
The lay-offs will prompt a restructuring charge of up to $1.3 billion pretax in the fourth quarter. Still, the company confirmed adjusted profit guidance between $4.54 and $4.59 per share for 2009.
Johnson & Johnson plans to simplify its business structure and projects that it will save between $1.4 billion and $1.7 billion annually after the restructuring is complete in 2011.
The company, the world's most diversified health-products maker, saw its revenue fall 5% in the third quarter as intensifying generic competition slashed sales of about a half-dozen of its prescription drugs, including the schizophrenia drug Risperdal and the epilepsy treatment Topamax.
Chairman and CEO William C. Weldon said the moves were meant to position the company for long-term growth in an evolving, and sometimes turbulent,market.
"These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson," he said."We recognise their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process."
The new restructuring programme comes on the heels of management's decision to reorganise its comprehensive care business in August. That unit was created under a 2008 restructuring programme with the goal of boosting sales,though sales were down during the first half of 2009. The unit makes medical devices and tests.
"When you look at the total economic environment, I don't think anybody knows what's going to happen," Weldon said."But nobody expects it to come back tomorrow."
He said the move was based on a broad, global view of the changing healthcare industry, taking into account national and international markets. As for health care reform, management has said it needs more clarity on what any future plan could look like before assessing a more concrete impact on the business."The restructuring programme is also not a move to centralise J&J's operations," Weldon added.
"We're trying to make sure we've really set ourselves up for the future," he said."We have such a rich portfolio that we have to make sure we have the resources to invest."
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