Siam Cement 3Q earnings’ outlook

Siam Cement is expected to post a weak net profit for the third quarter of 2014, down 29 per cent YoY and 18 per cent QoQ, according to analysts at SCB Securities.

The YoY drop reflects: no extra gain from the revaluation of its investment of THBt1.7bn as in 3Q13, the absence of 3Q13's THB840m inventory gain from its chemical unit and a slight decline in contribution from cement and building materials (lower sales volume) and paper (maintenance shutdown) units. The QoQ fall comes primarily off the absence of seasonal dividend income

SCG expects local cement and building material sales volume to slip three per cent YoY (versus +2 per cent YoY in 1H14) and five per cent YoY (versus -7 per cent YoY in 1H14), respectively. Product selling price is expected to be high for both cement (gradual price hike since 2Q13) and ceramic tiles (change in product mix to mid- to high-end market in 1H14).

Siam Cement’s 3Q14 earnings will be released on 29 October 2014.