Siam Cement (SCC): 2Q09 earnings - Stable QoQ

Siam Cement (SCC): 2Q09 earnings - Stable QoQ
Published: 17 July 2009

SCC is expected to report a 2Q09 net profit of Bt5.2bn, down 28.3% YoY but flat QoQ. Stripping out extraordinary items, its normalized profit is expected to be Bt5.2bn, down 27.8% YoY but flat QoQ.

The YoY dip would be due to a reduction in cement and paper earnings, as well as lower dividend income and equity income. Meanwhile, the flat QoQ would be due to soaring chemical earnings counterbalancing the lower cement and paper earnings from seasonality, and higher dividend income and equity income. The company’s 2Q09 results will be announced on July 29.

SCC’s 2Q09 cement EBITDA is expected to be Bt2.7bn, down 5.1% YoY and 24.1% QoQ. The YoY drop would be from a contraction in local and export cement sales volume of around 10.0% YoY.  Meanwhile, the QoQ dip would be from a drop in local cement sales volume of almost 20.0% QoQ from seasonality, and the slight drop in domestic and export cement selling price QoQ due to increased price competition amid fragile demand.