Siam Cement posts 18% profit fall, beats forecasts

23 July 2008 12:15  [Source: ICIS news]

SINGAPORE (ICIS news)--Thailand’s Siam Cement group has reported an 18% fall year on year in its second-quarter net profits to baht (Bt) 7.2bn ($216m), which was ahead of forecasts and despite an increase in sales volumes and prices, the company said on Wednesday.

 

The company attributed the dip in net profits for the period ended 30 June mainly due to a non-recurring after tax gain of Bt2.5bn from the divestment of shares in Siam Yamato Steel and PTT Aromatics in the corresponding period last year, it added.

 

The decrease was also, in part, due to the rise in costs for raw materials, energy and logistics which was in tandem with the surge in crude prices earlier in the year, the company said.

 

Despite the decline, the group still managed to beat earlier analysts’ forecasts of Bt 6.43bn.  

 

Consolidated sales grew 26% year on year in line with increased sales volumes and higher prices of major products, it said.

 

Looking ahead, the management expected tougher conditions for the company as energy prices continued to remain high, coupled with signs that domestic demand could be slowing on the back of inflationary pressures.

 

In addition, the global chemicals industry is expected to enter a cyclical trough in 2009 as global demand is set to be outpaced by additional supply from the Middle East.

 

($1 = Bt33.38)

 

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By: Bohan Loh
+65 6780 4359

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