Operating results for Q3-2006

P.40 / 2006

November 10, 2006

President The Stock Exchange of Thailand

Re: Operating results for the Third quarter of 2006

Preuksa Real Estate Public Company Limited would like to inform of the Company and its subsidiaries' performance for the third quarter of 2006 as follows:

Total Revenues
The Company and its subsidiaries' total revenues in the third quarter of 2006 were Baht 1,713.4 million, a decrease of Baht 285.3 million or decreased by 14.3% in comparison with the same period of the previous year, resulting from a decrease in sale of single-detached houses of Baht 346.9 million or decreased by 35.4%, a decrease in sale of duplex houses of Baht 184.7 million or decreased by 55.6%, together with a decrease in sale of commercial buildings of 91.9% or Baht 43.4 million. Despite certain decreases, sale of townhouses increased by Baht 280.7 million or an increase of 43.9%.

Cost of sale of real estate
Cost of sale of real estate in the third quarter of 2006 amounted 1,167.2 million or accounted for 68.1% of total revenues, higher than that of the same period of the previous year, which accounted for 63.9% of total revenues as a result of increases in raw material costs, labour costs and oil price, of which increased since 2005 year-end.

Selling and administrative expenses
Selling and administrative expenses in the third quarter of 2006 were Baht 247.7 million, an increase of Baht 10.7 million or increased by 4.5% from those of the previous year, resulting from an increase in personnel related expense of Baht 9.5 million or increased by 17.0%, together with an increase in other expenses of Baht 19.8 million or increased by 44.9%. Regardless of such increases, some selling and administrative expenses revealed decreases, specifically, a decrease in business taxes and transfer fees of 12.9% or Baht 10.3 million and a decrease in marketing costs of 15.0% or Baht 8.6 million.

Net profit
For the third quarter of 2006, the Company and its subsidiaries recorded a net profit of Baht 256.9 million, decreased by Baht 94.1 million or 26.8% decreased from that of the same period of the previous year, as a result of decreases in total revenues whilst increases in total expenses as aforementioned.

Please be informed accordingly.

 

Sincerely yours,

 

(Mr.Veera Srichanachaichok)
Director & Chief Financial Officer

 

Investor Relations Department,
Tel. 0-2576-0007 ext.863