SCCC net declines 5.4% in Q1
Siam City Cement posted net profit of Bt1.21 billion in the first quarter, down 5.4 per cent from Bt1.28 billion in the same quarter of last year. This is despite achieving net sales of Bt7.5 billion, up 8.4 per cent year on year from Bt6.9 billion in the
The company reported that domestic growth of cement consumption continued thanks to infrastructure projects, commercial developments and expansion of the real-estate sector.
The net sales growth has been achieved through increased cement sales in domestic and cross-border markets with improved price realisation, and despite a significant reduction in clinker exports, the firm said. Clinker is a raw material in the production of cement.
Other businesses
Other construction-material businesses also increased their volume and prices on strong overall business expansion.
Key energy-saving initiatives such as waste-heat recovery and alternative fuels generated additional benefits.
However, production costs continued to increase because of higher electricity unit rates and transport costs.
This led to slightly lower operating profit compared with the previous year.
SCCC forecasts that cement consumption will post strong growth for the remainder of 2013 because of planned public infrastructure projects, the development of transport and logistics routes, and the expansion of modern retail channels.
