TPI Polene (TPIPL) posted a better than expected 3Q10 result due mainly to higher margins for its cement business. Profit forecasts have been lifted to reflect this and the improved outlook for the industry.
The company booked a normalised 3Q10 profit of Bt554m, up 77.9% YoY and 111.2% QoQ. The improvement was mostly attributable to an increase in its gross margin to 22.8% from 21.2% and 19.1% respectively in 3Q09 and 2Q10. This in turn mainly reflected a higher margin of 15.7% on cement compared with 17% in 3Q09 and 11.7% in 2Q10. Nonetheless, TPIPL’s cement margin did not compare favourably with Siam Cement (23.4%) and Siam City Cement (41.5%).