SCG has announced its operating results for 3Q18 and first nine months, also rolling out its proactive preparation for trade war impact and the uncertainty of the world economy.
The results showed an all-around increase in revenue, while profits dropped due to rising costs in raw materials and energy, as well as global trade slowdown and asset impairments. SCG has noted the impact of the trade war and uncertainty of the global economy, launching its six part proactive plan. This plan includes broadening export opportunities in line with global market flows, managing energy costs, utilising digital technology to boost manufacturing efficiency and reduce costs, developing innovation and high value-added products and services, enhancing working capital efficiency, and reviewing its investment portfolio and investment costs. This is all with the aim of the company maintaining the competitiveness of its business.
The company has reported its unaudited operating results for 3Q18, including registered revenue from sales increasing 9% year on year and 2% when compared with 3Q17. It is thought that this was due to growth in all business units. In addition, profit for the period decreased by 20% year on year and 24% when compared to 3Q17. This was mainly from asset impairments charges in accordance with accounting standards, as well as higher naphtha costs, which surged with global oil prices.
In terms of operating results for the first nine months of 2018, the company’s registered revenue from sales increased 7% year on year, as a result of higher revenue from all business units. Profits for the period were reported to decrease by 19% year on year, mainly due to lower performance in chemicals business and asset impairments in 3Q18. In addition, export revenue increased 7% year on year, accounting for 27% of SCG’s consolidated revenue from sales.
Outside of Thailand, SCG’s revenue from sales in ASEAN accounted for 25% of the company’s total revenue from sales, representing an increase of 15% year on year. In the first nine months of 2018, revenue from sales in ASEAN was 24% of the total revenue from sales and an 11% increase year on year. Further to this, 18% of SCG’s total revenue from sales were recorded from other regions outside of ASEAN.
In terms of SCG’s cement building materials business, the company recorded a 4% increase year on year and a 3% increase from 3Q17. This was a result of regional markets expansion. In the first nine months of 2018, revenue from sales increased 4% year on year, owing to regional markets expansion. Profit for the period decreased year on year.
“SCG’s operating results for 3Q18 and the first nine months of 2018 showed an increase in revenue in all business units, due to improved overall market conditions, higher demands of cement and building materials from domestic and foreign investment projects by public and private sectors, as well as consistent market demands in the chemicals and packaging business, though the profit dropped from higher raw materials and energy costs, together with global trade slowdown and asset impairments write-down,” said Roongrote Rangsiyopash, President and CEO of SCG. “SCG is confident that we are able to strengthen our domestic and regional business by short-term strategies, to enable us to timely adapt to the changing circumstances, with six directions of proactive plan outlined above, and the long-term strategy that has built a sustainable growth for our business.”
Read the article online at: https://www.worldcement.com/asia-pacific-rim/31102018/scg-announces-operating-results-for-3q18/
You might also like
CEMEX has announced that it has acquired a 51% stake in Israel-based SHTANG Recycle LTD, a construction, demolition, and excavation waste, (CDEW) recycling company.