Siam City Cement (SCCC) has announced strong 1Q11 earnings of THB1160m (EPS Bt4.85), the highest in four years, strongly up 96% QoQ and 37% YoY.
This was driven by a high sales level of THB6.218bn (+16% QoQ, +15% YoY). The gross margin was up to 46% compared with 42% in the previous quarter and 43.9% in the previous year on higher cement prices and the Waste Heat Recovery (WGR) system savings.
SCCC earnings performance has been down for the past six years from THB4.1bn in 2004 to THB2.7bn in 2010. This year, earnings will improve driven by higher cement demand, up 5%, from government infrastructure projects and private investment, plus higher average cement prices, up by THB100-200/t to compensate for higher coal and energy costs.
In addition, the Waste Heat Recovery (WHR) project (cost THB2.30bn) will save energy costs of THB540-640m per year.