Siam Cement and its rival Siam City Cement are both likely to report a decline in second-quarter net profit due to high oil prices and a slowdown in construction projects, analysts say. "Cement sales dropped in the second quarter mainly because many major construction projects face delays," Siam City Securities said in a research note.
Since parliament was dissolved in February, ahead of elections that were later annulled, Thailand has had no working legislature and only a caretaker government under Prime Minister Thaksin Shinawatra. The political uncertainty has slowed government projects and prompted some private companies to delay construction plans. Heavy rain during the second quarter, which interrupted construction activity, also dampened demand for cement.