Thailand’s Siam Cement Pcl. (SCC): 3Q07 earnings slightly better QoQ

Thailand’s  Siam Cement Pcl. (SCC): 3Q07 earnings slightly better QoQ
Published: 11 October 2007

SCC is expected to post a 3Q07 net profit of Bt8.5bn, up 11.6% YoY but down 3.8% QoQ. Extra gains (after excluding 30% tax) are anticipated to be Bt1.8bn from the sale of its remaining 5% stake in The Aromatics (Thailand) (ATC.BK, Bt72.50, OP). Its 3Q07 normalized profit is expected to be Bt6.7bn, down 21.8% YoY but up 4.9% QoQ. The YoY decline would be due to the decelerating performances from its chemical, cement, and paper units, while the QoQ rise would be attributable to the improved chemical earnings outstripping its poor domestic-linked business performance.  

SCC’s 3Q07 cement EBITDA is expected to be Bt2.6bn, down 13.6% YoY but up 9.3% QoQ. The drop YoY would be due to the depressed domestic sales volume outstripping export expansion to Asia and Europe. The improvement QoQ would be propelled by the improved local confidence following the resolution of the political stalemate, implying a gradual recovery in construction activities throughout the period. Due to the currently fragile domestic demand, local cement selling price is expected to be flat at Bt1,750 per ton.