Siam Cement Group optimistic about 4Q

Siam Cement Group optimistic about 4Q
29 October 2009

Siam Cement Group (SCG), the country’s largest industrial conglomerate, is hopeful of a better fourth quarter when some of its businesses should turn around and resume their upward trend.

In an article in the Bangkok Post, President and CEO Kan Trakulhoon said revenue in the next quarter would be pressured by the petrochemical business, which accounts for almost 40% for the group’s revenue, because global prices have slumped and the spread margin has narrowed.

But cement and construction, SCG’s other core business unit, has grown much stronger, to the extent that it could sustain overall performance.

Mr Kan hopes government infrastructure spending and the global economic recovery will improve confidence in the property sector, which will benefit the group’s cement and construction materials business in the fourth quarter.

"As the last quarter is also a dry season, cement demand and prices should improve when many construction projects resume," said Mr Kan.

I believe we will perform better than last year in the fourth quarter because of no inventory losses. I also hope we will perform better on a quarterly basis."

SCG reported net sales of THB64.54bn, a 13% rise from the previous quarter, on improved product prices. The sales, however, dropped 19% year-on-year due to higher prices last year.

Published under Cement News