Mixed messages… record profits or price shocks in Thailand

[webfact]

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ANALYSIS | by Michael Bridge

OK, we know the combination of the pandemic, lack of tourists, and now the current crisis in Ukraine has not been welcome news for Thailand, or for that matter most of Asia.

That said I was very puzzled to pick up the local paper to read that Toyota’s annual sales hit the second-highest profit level on record.

Surely with all that’s been going on around the world and having to deal with the lack of semiconductors, this must be fiction.

Not so, as on the same page, German automaker Mercedes Benz AG said that due to higher sales prices, it had made a US$3.6 billion profit in Q1 up by 3%.

Even PepsiCo revenues rose by 9.3% to US$16.2 billion also in the first quarter.

As Russia invaded Ukraine on February 24th some may say Q1 was almost over, however, these figures are impressive especially as the pandemic was still evident in most regions at the time.

Doom and gloom

Then turning the page, I was hit by a very different headline, “World Bank says price shocks to last at least three years.”

In its first comprehensive analysis of the impact of the war on commodity markets, the World Bank said the world faces the biggest commodity price shock since the 1970s.

It is being aggravated by restrictions on food, fuel, and fertilizer trade.

 

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I could go on, but it made me think what a crazy world we have when one side is reporting good news, while the others are predicting doom and gloom.

Hopefully, sense will prevail, and a ceasefire may be negotiated, but who can trust Putin to keep his word.

So, whether the World enters into a global conflict, the crisis is likely to go on for some time, and will Toyota or Pepsi still make big profits?

I am sure some companies will most likely actually do even better through Putin’s madness.

 

So, who actually benefited the most from WWII?

The United States benefited the most from WWII as it had a large population, technological prowess, and the capital necessary to change WWII machinations into business and industry that benefited the civilian. 

 

Europe saw great growth post-WWII; it just happened slower than it did in the United States and Japan.

 

Of course, despite the decline in general military spending in recent years, the business of war is now showing signs of major sales and profits again.

 

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Back in 2012 the one hundred largest arms producers and military services contractors recorded $395 billion in arms sales, with America’s Lockheed Martin, being the largest arms seller.

Certainly, arms suppliers are likely to see record profits as most countries will now try to upgrade their own strike forces, in view of Russian threats.

Of course, it is a long way from selling black market booze or silk stockings, but there will always be someone making a healthy profit somewhere out of a war.

I have to admit personally that reading the paper is becoming very confusing these days, so maybe I would be better off sticking to the sports pages.
 

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[RichardColeman]

4 hours ago, webfact said:

That said I was very puzzled to pick up the local paper to read that Toyota’s annual sales hit the second-highest profit level on record.

Did Thais hit a record level of write-offs ? 

[worgeordie]

Things look good for corporations ,first it was Covid ,that was

used as an excuse to raise prices ,now it's Ukraine , while people

are up to the eyes in debt, many countries ditto, savers are looking

at nearly zero returns on their money, infact taking in inflation ,their

saving are slowly melting away, 

 

The future does not look bright ,big increases on electric and gas

in the West , for the man in the street, times are going to get harder,

regards Worgeordie

 

[sammieuk1]

Spare a thought as military spending goes through the roof some poor sobs can't get an engine for a sub ???? 

[hotchilli]

Record profits..

Is that because of higher car sales or just higher prices?

[garyk]

Stuff I am interested in the profits are up, and sales are way down. 

[RandiRona]

5 hours ago, webfact said:

I have to admit personally that reading the paper is becoming very confusing these days, so maybe I would be better off sticking to the sports pages.

Good idea!!

[spermwhale]

Who is "I." Typically in op-eds written in the first person, it is signed by the person writing it. Another journalism tip for those running this site. 

[Elkski]

Corporate greed.   Some CEO said inflation is good for profits.  

https://www.theguardian.com/business/2022/apr/27/inflation-corporate-america-increased-prices-profits

 

Edited May 3, 2022 by Elkski

[ASEAN NOW News]

37 minutes ago, spermwhale said:

Who is "I." Typically in op-eds written in the first person, it is signed by the person writing it. Another journalism tip for those running this site. 

ANALYSIS | by Michael Bridge shown at the top of this article.

[ThailandRyan]

How many of those bank loans used to purchase said Toyota's have gone into default.  So what if a company makes a profit in the end it is the banking industry who suffers from losses and then do they ever write ofthose NPL's here in Thailand.  As of yet I have not seen or observed those losses ever explained by a bank to it's investors.  The blind leading the blind.  A meltdown is sure to be on the not to distant horizon.  My view of course, but hey I don't have any skin in the game as I have no debts unlike the millions of Thais here in Thailand.

[Zozod]

I totally agree about “sticking to the sports pages.”  There is so much noise in the paper, on TV, on social media, etc. that I am starting to understand the “fog” most people are in and how easy it is to get that way.  

[Megasin1]

4 hours ago, worgeordie said:

The future does not look bright ,big increases on electric and gas

in the West , for the man in the street, times are going to get harder,

Unfortunately its not just electric and gas. We are already feeling the effects of Putins war. Ukraine produced 25% of the worlds laminated wood (strange but relevant fact). Chicken is now the same price as steak (grain shortage) and next year 350 million people will be starving as a wheat shortage takes effect. On top of covid it is becoming a rather unfortunate "perfect storm". I always laughed at preppers with their underground bunkers and 25 year food supplies, but it seems they may be 50% correct.

[Megasin1]

I dont know why my above post posted here when I was replying on a different thread ??? but hey, not going to lose any sleep over it ????

[metisdead]

An misleading/inflammatory troll post and replies has been removed.

[John Drake]

3 hours ago, ASEAN NOW News said:

ANALYSIS | by Michael Bridge shown at the top of this article.

And who is Michael Bridge? Usually the byline also mentions a person's qualifications to write an editorial piece. Or is this just a glorified letter to the editor sort of thing?

[zzaa09]

1 minute ago, John Drake said:

And who is Michael Bridge? Usually the byline also mentions a person's qualifications to write an editorial piece. Or is this just a glorified letter to the editor sort of thing?

A bit dodgy....

A number of recent pieces under the auspices of AN News regarding referencing Thailand/things Thai that come across with little [newbie] knowledge of the place. 

[StayinThailand2much]

It's about the pricing power of those companies. And higher inflation and raw material/labour costs of 5% have always been a good excuse to raise prices by 10%...

[DjSilver]

Well, we all know this stupid thai mentality saying they rather have a fast profit than a long term profit even if it mean 10-100 times more money. Thai peoples mentality is immature like pre-teenagers and can not grasp the whole picture.