Siam City Cement weak fourth quarter results, Thailand

Siam City Cement weak fourth quarter results, Thailand
Published: 16 February 2011

SCCC reported a net profit for 4Q10 of THB570m (US$18.6m), down 19% YoY and 2% QoQ, with the YoY decline attributed to flooding in the central and northeast regions, and the QoQ decline due to quarter being the low season for cement sales. Full-year net profit of THB2.7bn represents a decline of 8.3% YoY, which was due to a narrowing EBITDA margin from 25% in 2009 to 23% because of price competition.

SCCC looks likely to post a net profit of THB3.13bn, an increase of 15.9% YoY, which will mark its first profit growth since 2004. This breakthrough profit growth is based on the expectation of a 5% YoY rise in domestic sales volume to 27.6Mt, with the key sales catalyst to be demand for use in government mega transportation projects, such as the purple (Bangsue-Bangyai) mass transit line, the blue (Hualampong-Bangkae and Bangsue-Tapra) extension lines, and the red (Bangsue-Rangsit) line.