Parts-maker SNC eyes 2014 turnaround

Auto & Audio February 12, 2014 00:00

By The Nation

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SNC Former Plc, an international manufacturer of components for the air-conditioning and automobile industries, expects this year's revenue and net profit results to be an improvement over the 16.94-per-cent drop in profit last year.

The improvement would come from better management of production costs, cautious investment and projected stronger exports of Thai air-conditioners, despite expected weaker demand for automobile air-conditioners, Samitt Palitagram, managing director of SNC, said yesterday.

Thailand produces 18 million-20 million home air-conditioning units a year, with 85-90 per cent for export and only 3 million-4 million units for the domestic market, so SNC’s sales are not affected much by the Thai economy or the prolonged political unrest.

SNC commands 80 per cent of the home air-conditioning market.

This year, SNC plans to spend about Bt200 million on existing projects, tools and machinery upgrades.

Its profit margin on home air-conditioning units runs at 5-6 per cent, and 9-11 per cent on automobile air-conditioning units.

SNC expects a net profit of at least Bt400 million this year, after compensating for carry-over investment, compared to Bt423.20 million last year, he added.