|
TLT: Explanation for operating results in Quarter II/2008
Viglacera Thanglong Ceramic Tiles JSC explained the operating results as follows
For the first six months of 2008, the Company suffered a loss of VND 28.4 billion in which the loss in Quarter I/2008 was VND 4.6 billion and the loss in Quarter II/2008 was VND 23.7 billion. Reasons for the loss include:
1. Effects of macro-economy: High inflation and credit tightening policy has reduced the demand for basic construction, which has exerted strong effect on the sale of the Company. Besides, there are more competitors from mew factories and foreign substitutes.
2. Increased price of input materials: High price of input materials affect the operating income of the Company.
3. Effects of high interest rate
4. Unstable power supply: Power shortage has happened nationwide and frequently in Vinh Phuc where the electric grid has not met the demand of industrial development. However, the power cut has created great damage to the Company’s products in progress, both in quantity and quality. As estimated, the power cut cost about VND 1.5 billion in Quarter II/2008.
5. Effect of machinery on productivity: Although the company has performed periodical maintenance (by month, by quarter, by year), because of long time using (since 2000) and frequent power cut, unexpected stop of machinery has happened, which affects the productivity.
6. Sales of products were VND 3.38 billion higher than the planned (due to higher adjusted average price) but the general and administration expenses and interest expenses were VND 37.295 billion.
HaSTC
|
