Message from the Managing Director Dear shareholders, customers, employees, partners and friends, The Thai economy showed signs of recovery in 2011. Industrial manufacturers, who represent the majority of our customer base, had consistently increased their production, which resulted in a positive effect on the company’s revenue, which increased more than 20 percent. Over the past two years, UMS had worked in conjunction with its major shareholder – TTA in making continuous enhancements to the company including strategy development, process improvements, organizational refinements and employee development. Clearly the objective is to position UMS for greater opportunities and therefore a benefit to shareholders in the long term. The Company’s income during the fiscal year from October 2010 to September 2011 was Baht 3,275.58 million an increase of 21.13 percent from 2010. Profits were recorded at Baht 60.52 million, also a significant improvement over 2010. This was due to the well-balanced sales to both SME industries as well as the large corporate segment (cement manufacturers). Despite the aforementioned, it can be said that 2011 was indeed one of the most challenging years for UMS, where a number of significant unfavorable events occurred, all of which impacted the company’s production capability, sales and profits. The Suan Som facility closed in July, due to community protests and provincial government orders, the retirement of the long time Managing Director; Khun Chaiwat and the cessation of production in the Ayutthaya plant due to the floods in October. However, the company managed to navigate through these challenges. The ability of the Nakhon Luang plant to increase its production capacity to over 5,000 tons per day, in order to compensate for the closure of Suan Som and the well planned flood prevention strategy that ensured that both the Ayutthaya and Suan Som plants remained dry, with no injuries to staff and no damage to machinery and equipment. Clearly this is testament to the determination, commitment and fortitude of the management team and they are to be praised for these efforts. While the Suan Som plant remains non-operational at this time, provincial authorities have granted approval for the removal and sales of the existing stockpiles, which at this time is recorded at 440,000 tons. In conjunction with port facilities enhancements for greater environmental protection, it is expected that the Suan Som facility may commence operations again in mid 2012.
6 | Annual Report 2011