Taiwan Cement Corp posted an almost 43 per cent increase in net profit for the first half of this year on the back of strong growth in its operations in China.
One of Taiwan’s leading cement makers, the company said Tuesday its net profit during the six-month period totalled NT$4.05bn (US$140m), up 42.77 per cent from a year earlier.
Earnings per share was NT$1.1, up from NT$0.86 in the first half of last year and the second highest in the company’s history, behind only the NT$1.16 EPS registered in the first half of 2007.
During the same period, Taiwan Cement generated NT$11.98 billion in sales, up 10.42 per cent from a year earlier, and its gross margin stood at 6.5 per cent, compared with 6.22 per cent a year ago.
Taiwan Cement said its improving bottom line largely reflected the contribution made by its China-based subsidiary TCC International Holdings Ltd., which posted HK$909m in interim profit, up from HK$112m a year earlier.
Taiwan Cement said it expects a better earnings outlook for the second half of this year as the cement sector in China will benefit from the industry’s peak season, when product prices will likely rise 8-12 per cent from the first half.
The higher product prices on the mainland will also reflect ongoing power rationing there, which has put a lid on cement production volume.