Siam City Cement says floods to affect fourth quarter earnings

Siam City Cement says floods to affect fourth quarter earnings
Published: 07 November 2011

Siam City Cement Plc (SCCC) says its fourth-quarter financial performance could be poor as severe floods have lowered cement demand while also disrupting land transport and port operations, the Bangkok Post reports.

The country’s second-largest cement manufacturer yesterday reported 49% annualised growth in net profit to THB868m in the third quarter. Consolidated revenue rose 21% YoY to THB6.11bn. The operating profit margin improved to 18.3% from 16% a year earlier, the company said. Sales of building materials are normally low during the third quarter which is the rainy season.

SCCC expects widespread flooding in many provinces will trim domestic cement demand in the final quarter. Exports will also be curtailed as a result of logistics constraints.

"Operations at SCCC plants in Saraburi are not directly affected by the floods so far, but flooded roads and ports cause impacts on the supply chain, resulting in additional costs," he said.