Siam City Cement 1Q07 earnings beat expectations

Siam City Cement 1Q07 earnings beat expectations
Published: 10 May 2007

SCCC reported a 1Q07 net profit of Bt1.1bn, up 0.2% YoY and 64.3% QoQ. The surge QoQ was attributable to the rise in sales volume in the domestic and export markets. The results were 19% higher than the market expected due to higher-than-expected cement sales volume, combined with an improved gross margin following lower production costs.  
 
Higher-than-expected sales volume in both domestic and export markets  
 
SCCC’s 1Q07 sales were Bt5.9bn, down 3.6% YoY but up 7.1% QoQ. The lower YoY results were due to a lack of domestic demand, while the rise QoQ was supported by rising sales volume in both the domestic and export markets.  
 
According to the Bank of Thailand (BoT), 1Q07 domestic cement volume rose to 7.6mn tonnes, down 1.1% YoY but up 10.4% QoQ. The increase QoQ was driven by seasonal effect, as the first quarter is normally the peak season, combined with accelerated demand for reconstruction after the countrywide flooding.  
 
Meanwhile, export sales volume in 1Q07 from Thailand increased to 3.8Mt, up 6.6% YoY and 8.2% QoQ.