Sino-Thai Construction Reports $20m Loss, Misses Estimates

An Indian trade union has asked 130 global garment brands for help in a dispute with a major label supplier in a rare move by workers that campaigners say spotlights an unmapped part of the supply chain. (Reuters Photo/Chaiwat Subprasom)

By : Chayut Setboonsarng | on 3:00 AM February 16, 2018
Category : International, Asia-Pacific

Bangkok. An Indian trade union has asked 130 global garment brands for help in a dispute with a major label supplier in a rare move by workers that campaigners say spotlights an unmapped part of the supply chain.

Shares of the top Thai construction company fell more than 7 percent, in a broader market that gained 0.5 percent.

Last year, the company reported a profit of 1.38 billion baht.

Construction material prices and wages rose "significantly" and major contracts were delayed due to problems with delivery, the company said in a statement.

In July, migrant workers abruptly fled Thailand after the government introduced new labor laws. The exodus of workers hit the construction industry and led to project delays.

Cost of construction rose 32 percent from a year earlier to 21.5 billion baht, it said.

Provisions for loss of construction projects for 2017 rose to 1.7 billion baht from 400 million baht a year ago, Sino-Thai said.

Thailand plans to increase minimum wages by 7 percent in April, which is expected to add to cost pressure.

Revenue was, however, up 14 percent at 21.1 billion baht, on bidding for new government projects and economic expansion, the company said.

Reuters

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