Shares in TPI Polene, Thailand’s third-biggest cement firm, fell 11 per cent to a 10-year low on Wednesday after it revised its second-quarter results to show a huge loss after a provision for a court fine.
Late on Tuesday the company reported a net loss of THB6.8bn (US$200m) for the April-June quarter after setting aside 6.9 billion baht for a court fine imposed in December after it was found guilty of stock manipulation in 2004. Last month the company reported a preliminary second-quarter net profit of THB74m, down from last year’s THB878m, and it said on Friday that it would set aside the provision in the third quarter. However, director and founder Prachai Leophairatana told Reuters on Wednesday the company had decided to record the provision early to address market doubts. "The stock exchange has asked us about this issue, so we decided to record the provision in the second quarter to end the market’s queries," he said.
"It will make no difference whether we set the provision in the second quarter or the third," he added. Prachai reiterated that he expected a net loss for the full year.