Siam Cement Group’s (SCG) operating performance for Q3 of fiscal 2011 has shown improved profit and revenue from increased volume. However, the company has warned that the flood crisis could result in decreased revenue in Q4 2011, but this is expected to recover in the first two quarters of 2012.
The unreviewed consolidated financial results for Q3 showed a 19% year-on-year increase in revenue from sales to 94 281 MB, attributable to increased product prices from increased cost in most business units. The profit for the period was up 13% year-on-year to 7377 MB, but down 2% quarter-on-quarter as a result of higher energy prices in SCG Cement and lower profit and dividends from SCG Investment.
For the first nine months of 2011, SCG recorded revenue from sales of 280 635 MB, an increase of 25% year-on-year, primarily from higher volume and higher product prices in all business units. Profit of the period increased 16% year-on-year to 24 080 MB, boosted primarily by growths in SCG Cement and SCG Chemicals.
SCG’s business in the ASEAN market outside Thailand recorded revenue from sales of 17 854 MB for the first nine months of 2011, a 14% growth year-on-year.
In Q3 2011, SCG Cement recorded revenue from sales of 13 768 MB (14% increase year-on-year) and its profit for the period stood at 1848 MB (up 40% year-on-year).
Despite concerns over recent flooding for the fourth quarter, Mr Kan Trakulhoon, President and CEO of SCG, said: “We expect the situation to get better when the water level subsides and our business to regain in the first and second quarters of next year. In any case, the flooding does not affect production capacity of SCG’s main products – building materials, cement, chemicals and paper. Production of building materials will be accelerated to serve extensive demands after the flooding crisis is over.”
So far, SCG has rendered assistance to flood victims through four tangible approaches, namely: giving immediate relief, donating flood prevention materials, recovering after the flood, and creating preventive measures for future crises. SCG has continued to give emergency aids to flood victims by distributing more than 50 000 paper toilets, 20 000 relief bags, and provided boats, life vests, water tanks, water filters, meal boxes, and floating toilets. Apart from emergency aids, SCG also provided materials to prevent flooding including 1 million sandbags and 1 million grounded limestone bags.
After the flood, SCG Experience will open a free consulting clinic for house rebuilding by SCG architects. The company also plans to rebuild more than 300 childcare centres and schools by SCG volunteers. As to long-term preventive measures, the company will increase efforts for housing innovations suitable for use during and after flooding, such as floating house, and will cooperate with the Disaster Relief and Prevention Department to educate the public on survival techniques during and after floods.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/26102011/siam_cement_releases_q3_results/