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DRC: Explanation for business result in Q3-2008
Danang Rubber Joint Stock Company announces business results in the third quarter of 2008:
|
No. |
Items |
QIII/ 2008 |
QII/ 2008 |
Increase/Decrease |
|
Value |
% |
|
1 |
Net sales and services |
285,161,009,401 |
388,669,520,251 |
(103,508,510,850) |
(27) |
|
2 |
Cost of goods sold |
242,355,528,394 |
347,277,415,163 |
(104,921,886,769) |
(30) |
|
3 |
Financial Expenses |
25,274,027,969 |
12,979,605,420 |
12,294,422,549 |
94.72 |
|
|
- Interest expense |
14,922,568,287 |
9,552,133,030 |
5,370,435,257 |
56.22 |
|
|
.- Loss for exchange rate difference |
8,820,777,796 |
3,427,472,390 |
5,393,305,406 |
157.36 |
|
|
- Other financial expenses |
1,530,681,886 |
- |
1,530,681,886 |
(119) |
|
4 |
Profit after tax |
7,804,646,946 |
14,676,882,285 |
(6,872,235,339) |
(47) |
Reasons:
Profit after tax in Q3 decreased by 46,82 % (or VND 6,872,235,339) against Q2 because of:
1. Financial expenses in Q3/2008 increased by VND12,294,422,549 against Q2/2008, include:
• Interest expenses rose by VND5,370,435,257
• The USD exchange rate was fast-changing, which led to loss for rate of exchange
• increasing difference VND5,393,305,406
• In order to overcome the difficulties in sale service, the company put up other activities
• such as : sales promotion, sales discount etc…, which led to an increase of VND1,530,681,886 in financial expenses
2. In the context of the price and inflation's market strong fluctuations, the company has many difficulties on product particularly that of low purchasing power which led to an decrease of VND103,508,510,850 in revenue However, the CEO board also tried to cut unnecessary costs in order to save VND5,422,187,210 of expenses.
Although financial cost jumped VND12,294,422,549, the profit dropped VND6,872,235,339.
This is the great efforts of the company in current period.
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