Thailand's Siam Cement Q4 net profit more than doubles to $232m

30 January 2013 09:15  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s Siam Cement Group (SCG) said on Thursday its fourth-quarter net profit more than doubled to baht (Bt) 6.91bn ($232m) from Bt3.2bn in the same period a year earlier, boosted by higher demand from flood-related rebuilding activities.

The rise in net profit was also attributed to “the seasonal year-end dividend contribution from SCG Investment,” the company said in a statement but gave no figures.

The industrial conglomerate’s earnings fell sharply in the fourth quarter of 2011 following the devastating floods in Thailand.

The company’s sales rose by 14% year on year to Bt99.9bn in October-December 2012, boosted by higher sales volumes across all of its businesses units.

For the full year of 2012, the company’s net profit fell by 14% year on year to Bt23.5bn, despite the 11% increase in sales to Bt407.6bn.

SCG’s full-year net profit was hit by the trough in chemical margins, inventory loss in the second quarter of 2012, and the forced shutdown of Bangkok Synthetic Company Limited (BST)’s plant, an associate of SCG Chemicals.

Looking ahead, the company said that it will focus on boosting its investments in Indonesia, Vietnam and Myanmar.

The company’s external sales in southeast Asia rose by 39% year on year to Bt31.2bn in 2012, amounting to 8% of the overall sales.

SCG is also planning to spend Bt2.15bn in research and development to create high value-added (HVA) products and services.

“In the past year, SCG spent Bt1.43bn on R&D, resulting in products in the HVA group accounting for 34% of the overall sales volume in 2012,” said Kan Trakulhoon, president and CEO of SCG.

($1 = Bt29.8)

By: Nurluqman Suratman

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