SCCC targets 7% growth in 2013 revenue
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Siam City Cement targets sales growth of at least 7 per cent this year amid solid demand from both the domestic market and those in neighbouring countries.
Sales growth last year was 14.2 per cent, from Bt23.15 billion in the previous year to Bt26.42 billion.
One of SCCC’s mothballed kilns is being upgraded and will be reactivated late this year.
After a recent business acquisition, a new company called Insee Super Block will start producing and selling lightweight concrete products next month, managing director Philippe Arto said yesterday.
Its consolidated net profit attributable to equity holders rose 10.4 per cent to Bt3.63 billion and earnings per share improved to Bt15.81 from Bt14.32 in 2011. SCCC’s board declared a total dividend of Bt13 per share.
Growth in domestic cement consumption is estimated at 11 per cent, he said, citing a figure from the Industrial Economics Office. Sales are being driven by infrastructure projects, commercial developments and real-estate expansion. SCCC has increased its total cement sales in line with the overall market.
Very dynamic neighbouring markets in grew much faster, at about 20 per cent. Solid sales growth was also achieved by other businesses such as mortar, aggregates, ready-mix concrete, Conwood products and Geocycle services.
SCCC’s production costs continued to rise on higher electricity rates, transport costs and wages affecting third-party services. Thanks to key energy-saving initiatives, such as waste-heat recovery and alternative fuels, the cost escalation was somewhat mitigated.
High competition prevented the company from raising cement prices to reflect the cost trend. This led to a lower operating profit margin of 16.7 per cent last year compared with 19.4 per cent in the previous year.
