Siam Cement Group (SCG) has reported an increased in profits in the final quarter of 2016 on the back of strong earnings from its chemicals businesses. However, revenues from the company’s cement and building materials business were down year on year.
According to the company, domestic demand for cement in Thailand fall 3% year on year in the quarter and 1% on the previous quarter on the back of soft demand from the private sector. Cement prices also fall noticeably year on year.
Exports meanwhile fell 0.3 million t to 0.7 million t, while the average export price fell US$9 per tonne to US$49 per tonne – a results of a rise in the increase of clinker sales in the export mix and a fall in the export of bagged cement. For the full year, exports hit 3.7 million t, a fall of 0.7 million t on 2015.
As a result, revenues from the company’s cement and building materials business fell 4% year on year in the final quarter of the year. Earnings were down 6% year on year and 8% on the previous quarter. On a full-year basis, earnings were down 5%.
Profitability took a more substantial hit, falling 39% in the quarter on the previous year as a result of increased depreciated expenses from new plants in Cambodia and Indonesia. Profit for the full year fell 17%.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/25012017/scgs-cement-business-takes-a-hit/