Holcim Philippines Inc said it made a net profit of 1. 2bn pesos last year, reversing a loss of 318.7m pesos in 2003, due to higher export sales and cement prices. Return on equity stood at 7.85 per cent. Holcim, formerly known as Union Cement Corp, said the introduction of application-based products also contributed to its profitability.
"The year 2004 has been a fruitful but challenging year for Holcim Philippines and the future will continue to be more challenging for the business. Demand for cement continues to be low while government funds are limited for infrastructure spending," Holcim said in a statement.
The company said the continuing increases in fuel and electricity costs are also expected to significantly affect its cost of operation.