26 March 1998: Mr. Prasert Maekwatana, managing director of Thailand“s largest glass container producer, Thai Glass Industries (TGI), has blamed losses from unhedged foreign loans and the rapidly ris…
26 March 1998: Mr. Prasert Maekwatana, managing director of Thailand“s largest glass container producer, Thai Glass Industries (TGI), has blamed losses from unhedged foreign loans and the rapidly rising costs of both imported raw materials and oil for the almost 40% drop in the company“s net operating profits last year. TGI“s net profit in 1997 fell 39.6% to 324.2 million baht; the decrease was due mainly to foreign exchange losses of 109.4 million baht on unhedged foreign loans. Given the depressed economy in 1997, TGI said, however, that it was satisfied with its performance and the continued support of its clients. Without the foreign exchange losses, the net profit for the year would have been 400.8 million baht. Sales in 1997 totalled 3.65 billion baht, down 3.6% from the previous year as a result of reduced demand during the region“s economic slump. Mr. Prasert pointed out that greater demand from breweries had, however, compensated for the downturn in general demand, and said that TGI expects normal performance levels in 1998. TGI“s director for finance and administration, Manas Manoonchai, said that since the final quarter of last year, the TGI plant had been running at full capacity. Following the floating of the baht, the company lowered production capacity to 85% as clients recycled glass bottles.