Siam Cement to post 27% fall in 2Q net profit

Siam Cement to post 27% fall in 2Q net profit
Published: 18 July 2008

Siam Cement PCL, Thailand’s largest industrial conglomerate, is expected to report a 27% fall in second quarter earnings from a year earlier when it had substantial one-time gains from asset sales.
The company is forecast to book a net profit of THB6.43bn ($192m) for the April-June quarter, down from THB8.82bn, according to a Dow Jones Newswires poll of nine analysts.
Net profit would be flat if a THB2.45 billion gain from the year earlier quarter is excluded, analysts said.
"Even though Siam Cement is pressured by rising costs of raw material and fuels, higher product prices of cement, construction materials, paper and petrochemicals should help support earnings," said Kim Eng Securities analyst Surachai Pramualcharoenkit.
Siam Cement, whose key businesses are cement, paper and petrochemicals, is scheduled to release its quarterly earnings around 0530 GMT Wednesday.

The cement business is likely to post EBITDA of THB2.7 billion, up 13%, fueled by higher product prices in local and export markets, said KGI Securities analyst Sirima Dissara.
Cement sales volume in the quarter is estimated to be 2.4 Mt, on a par with that of last year, KGI Securities said.