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Patkol Public Company Limited

Result from Business Operation Results from Business Operations In 2007, the Companyรปs revenues from sales and services were lower than those of the previous year by 2.8%. The main revenues were from Turnkey, ice making machine and refrigeration, and food and daily and food processing machine and system business, respectively. The higher rate of domestic sales, compared to the previous year, was due to the ethanol plant construction. The Company, therefore, recognized this year revenues at 34% of the total value. On the other hand, the decline in international sales was attributed to the weakness of the U.S. dollars, thus resulting in a high price competition among competitors.

Business Operation โœฝ

Overall pictures of the past operation The Companyรปs overall operation for 2006-2007 was as follows :-

Consolidated / Year Sale and services income Cost of sales and service Gross profit Selling and administration expenses Other income Income before interest expenses and income tax Interest expenses Income before tax Income tax Net income of minority interest Net profit

Year 2007 Total %

Year 2006 Total %

Unit : million Baht Variance Total %

3,673 3,568 105 294 29 (161) 116 (277) 2 1 (280)

3,779 3,377 402 229 32 205 77 128 26 (1) 100

(107) 191 (297) 66 (3) (366) 39 (404) (23) 3 (381)

100.0% 97.1% 2.9% 8.0% 0.8% (4.4%) 3.2% (7.5%) 0.1% 0.0% (7.6%)

100.0% 89.4% 10.6% 6.0% 0.8% 5.4% 2.0% 3.4% 0.7% 0.0% 2.7%

(2.8%) 5.6% (73.9%) 28.8% (8.4%) (78.5%) 50.2% (316.7%) (90.8%) (176.1%) (379.0%)

From the information above, the Companyรปs losses was attributed to the costs of sales and services which rose to 97.1% of the total sales, while the costs of sales and services in 2006 was 89.4%. This primarily caused by the dramatic change in prices of the main raw materials such as steel, stainless, and copper. Although the Company had purchased and stocked the raw materials, it was unable to do it completely due to the shortage in some certain periods, leading to higher costs than previously expected. The other part was a result from the costs underestimation of the ethanol plant construction projects. The analysis of each business type is as follows :

Annual Report 2007

38

As of 31 December 2007

Patkl 07  

PATKL_2007 PATKOL PCL Annual Report 2007

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