Siam Cement first quarter net profit rises 47% YoY, Thailand

Siam Cement reported a 47 per cent is first quarter net profit, mainly due to advances in its cement and petrochemical business.

The Thai conglomerate posted a net profit of THB8.8bn (US$805m) for the three months to the end of March 2013, up from THB5.97bn from a year earlier.

Its cement and building materials business posted strong domestic demand thanks to a lively construction sector. Steady growth witnessed over the 2011-12 period in the Thai cement market is expected to continue in the near-term. Last year cement consumption rose five per cent to 26.8Mt and further gains of five and 4.5 per cent are expected in 2013 and 2014, respectively.

Siam Cement Co (SCG) is the country’s largest cement company with 23.23Mta of capacity from five plants. Siam City Cement (SCCC) is the second-largest company with 14.78Mta at its single six-kiln plant in Saraburi.

Last month the company said it would consolidate its cement and building materials businesses to strengthen its competitiveness for further regional expansion. "There is strong synergy among the cement, building materials and distribution businesses, which are related to the construction industry," said Kan Trakulhoon, SCG president and, said in a filing to the Stock Exchange of Thailand.