West China Cement pretax profit rises 57 per cent

West China Cement pretax profit rises 57 per cent
Published: 08 September 2008

West China Cement Ltd. said first-half pretax profit rose 57 per cent to CNY87.7m, while turnover rose 68 per cent to CNY338m due to the two new Lantian production lines that came into production in April and July 2007.

The cement production and distribution company said turnover was ahead of budget in March to June, and the sales lost in January and February due to exceptional snow are expected to be recovered by the third quarter.

The company said it has been able to pass on the major effects of cost pressures, mainly rising fuel and coal costs, to its customers, with gross margin declining by only one per cent to 33 per cent.

The company said the Ankang project remains on schedule to begin production early in 2009, adding that demand for Ankang’s product has been underpinned by the reconstruction requirements following the earthquake in Sichuan.