Caribbean Cement Company Ltd (CCCL) has reported a rise in profit before tax for 2014. This totalled US$256 million, which compares to a loss of US$3 million in 2013. The improvement has been attributed to the implementation of price corrections in response to cost pressures (largely caused by the depreciation of the Jamaican currency), as well as a 14% rise in clinker production and a 45% increase in export clinker and cement sales volumes.
As part of debt restructuring actions in 2013, a credit of US$591 million was recognised in regard to withholding taxes associated with the operating lease. When earnings before tax, amortisation, depreciation and the lease charges in 2013 and 2014 are compared, CCCL achieved an improvement of US$546 million. The cement manufacturer notes that financial restructuring measures in 2013 also helped the company to reduce interest charges and offset foreign exchange losses.
Caribbean Cement Company saw its domestic sales volumes increase by 1% in 2014. This year, the company expects the decline in domestic demand to halt due to ‘the improved macro-economic environment’. CCCL adds that: ‘as part of the parent company’s, Trinidad Cement Limited’s, debt renegotiations and proposed rights issue, we expect to have access to funds to address key capital projects to improve operational efficiencies, asset utilisation and thereby grow our export sales’.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/27022015/caribbean-cement-company-2014-results-422/