|
TUF upbeat about US sales outlook Advance orders protect food giant |
|
Thai Union Frozen Products Plc (TUF) expects its sales in the US will be unaffected by the economic slowdown there, as most of its purchase orders have been already signed up in advance. "We haven't yet seen a direct impact from the struggling US economy and the current financial havoc, but financial constraints are anticipated worldwide. All corporations thus need to take caution during this period," said TUF president Thiraphong Chansiri. Mr Thiraphong said TUF's financial status remained good with a debt-to-equity ratio of 0.80 times. The economic decline in the US, the company's biggest market, hasn't hampered sales because tuna and shrimp are among "the least expensive seafoods", Mr Thiraphong said. "The company normally does quite well during recessions and crises in the US. We still see steady sales growth in our products in the US," he said. In the first half, tuna provided about half of TUF's total sales, and shrimp 18%. TUF sold 49% of its products in the US, 13% in Europe and the rest in Japan, Africa and the Middle East. TUF's net profit in the first six months rose 2.5% to 958 million baht. The company had a profit of 865 million baht in the second half of 2007. Lower fuel prices have helped reduce the cost of tuna, the company's main raw material, to about $1,800 a tonne from as high as $1,970 in the first half. According to Mr Thiraphong, the company is feeling increasingly confident it can break $2 billion in sales this year, notably because of lower US shrimp duties, a weaker baht and cheaper energy costs. "The second half will be among the best periods of the company's history," he said. "The company's gross margin has improved significantly as all negative factors such as the US shrimp duty, baht and fuel costs earlier this year have eased off."
TUF shares closed yesterday on the SET at 20.40 baht, up 60 satang, in
trade worth 25.1 million baht.
|
|
Bangkok Post, 18.09.2008, http://www.istockanalyst.com/article/viewiStockNews+articleid_2629775.html, 18.09.2008 |
