Chonburi Concrete expects material shortages
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Chonburi Concrete Product expects this year's revenue to be lower than its target of Bt2.5 billion because of the flood disaster.
Managing director Chakrit Theepakornsukkasame yesterday said revenue would likely be lower because of a shortage of construction materials, such as sand and broken rock, for CCP’s main production base, and a slowdown of construction projects in the flood-affected parts of Bangkok.
However, fourth-quarter performance is expected to be close to that in the third quarter, thanks to high demand for concrete products.
In the third quarter, CCP recorded Bt576.65 million in revenue, up 4.73 per cent year on year, and net profit of Bt11.91 million, up 150.26 per cent. The company cited higher orders and efficient production and selling costs for the profit rise.
Its gross profit margin was 13.89 per cent in the quarter, against 11.81 per cent in the same period a year ago.
CCP has not been directly affected by the floods, continuing its normal delivery to customers, Chakrit said. Its main products include ready-mixed concrete, precast concrete for system and structural works, and precast concrete for decorative use.
In the current quarter, the company has received new orders for both ready-mixed and precast concrete, as it has been able to continue production and delivery during the flooding, he added.
In the past two months, its brick prices have risen sharply after higher prices for sand. The price of lightweight bricks increased above Bt20 apiece from Bt17-Bt18, and its market share in this segment rose to 100 per cent, the managing director said.
“There is high demand for various forms of concrete products and supply is short in the market, because of a slowdown of manufacturers’ production as a result of the floods. Orders for those products are expected to continue increasing,” Chakrit said.
Next year, construction and property development are projected to be on the rise in the Northeast because of the region’s logistics system, economic expansion and flood-free zones. This could boost the company’s orders, he added.
