Siam Cement PCL, Thailand’s largest industrial conglomerate by sales, said Monday the strength of the baht will hurt its third quarter net profit, though the impact will likely be insignificant due to higher prices of products.
"I can’t tell the exact impact but profit will be shaved off less than THB700m (US$22.8m) for every THB1 that is stronger against the greenback," President Kan Trakulhoon told reporters on the sidelines of a seminar.
The Thai baht has been among the strongest performers in Asia this year against the U.S. dollar, with exporters increasingly making louder noises following the local currency’s sharp 7% rise in the year-to-date. The dollar was trading at THB30.74 late Monday, a fresh 13-year low.
Kan said exports now make up between 23% and 29% of total revenue, with this expected to increase to 30% by the end of the year. Siam Cement posted a net profit of THB6.99 billion in the third quarter of 2009, a 17.7% rise from a year earlier.
Siam Cement’s business operations include the chemicals, paper, cement and construction sectors.
He said Siam Cement’s product margin between high density polyethylene and naphtha has risen to around $400 per metric ton from $380-$390 per ton last month, he said.