TCL 2006 profits slip 1.3% to US$24m

TCL 2006 profits slip 1.3% to US$24m
Published: 28 March 2007

Trinidad & Tobago’s  Trinidad Cement Limited (TCL) has reported its 2006 net profits fell 1.3% to TT$152m (US$24.3m).  
 
TCL’s 2006 revenues actually increased to TT$1.72bn - the company’s record high and 20% up on the TT$1.43bn recorded in 2005, according to a company statement.  
 
Also, operating profits were up 44% to TT$265mn, while the company’s cement volume sales rose by 120,000t or 6%, concrete sales rose by 11,300t (4%) and packaging sales by 5.2mn sacks (5%).  
 
However, cement quality issues at Jamaican subsidiary Caribbean Cement Company (CCCL) resulted in a TT$30.3mn charge in February last year. Also, the parent company had a TT$8.7mn tax provision in 2006, versus a TT$67mn tax credit the year before. Both of these items dragged on the bottom line.  
 
The sales increase was due mainly to higher revenue and production than in 2005, when CCCL experienced two production interruptions due to hurricanes, the statement announced. "The group continues to benefit from buoyant demand in its Caribbean domestic and export markets, and from price adjustments," it added.  
 
TCL’s performance suffered in 2006 from a weak first half from CCCL, due to the Jamaican company’s product recalls, temporary plant closures and customer claims, local daily Trinidad Express reported.  
 
Results improved in the second half, however, due to a strong performance from Trinidadian subsidiary Readymix Limited (RML), and a rebound from CCCL.