Taiheiyo Cement’s Vietnam operating profit seen rising 50%

Taiheiyo Cement’s Vietnam operating profit seen rising 50%
Published: 27 June 2011

Taiheiyo Cement Corp’s operating profit in Vietnam is expected to increase 50% on the year to slightly more than JPY2bn (US$24.8m) for the year ending in March 2012.

A second kiln installed at the end of last fiscal year at Taiheiyo’s Vietnam factory will contribute to earnings throughout this fiscal year.

The firm’s sales in Vietnam will likely soar 60% to around JPY16bn, with cement sales expected to double to 4.35Mt.

The company assumes that the dong will plunge 15% on the year to the dollar and that the greenback will fall 8% against the yen. As a result, the yen-denominated earnings growth in Vietnam will be smaller than the local-currency-based gains.

Taiheiyo Cement plans to cope with rising raw material prices by adding the costs entirely to its products.