Carib Cement’s earning up, but profit down

Carib Cement’s earning up, but profit down
21 November 2005

A 17.5 per cent increase in revenue for quarter to September 30 was not enough to offset the negative impact of Hurricanes Dennis and Emily and higher energy costs at Caribbean Cement Company, which reported a $50.5 million loss for the period.

During the period, the company had the benefit of some cost reduction associated with the new and cheaper cement variety, Carib Cement Plus, which accounted for 77 per cent of its output, but the firm said the mid-year hurricanes "severely affected levels of production and sales for July".

It was also subjected to "significant increases in energy costs".
Although there was a slowdown in the growth of cement output - 12 per cent during the September quarter compared to near 17 percent growth in tonnage for the six months ending June 30, 2005 - revenues increased by17.5 per cent during the quarter, to $1.45bn.

This was higher than the 16.7 per cent growthe in revenues experienced over the last six months.

Third quarter revenue translates into an average increase in earning per tonne of cement from $6,714 per tonne during the first six months, to $7,123 per tonne of cement during the September quarter- a 6.1 per cent increase.

This largely reflected the 5.3 per cent average price increase on cement implemented at the beginning of the July this year. The company noted that "following the review of the impact on the operations in the third quarter of generally increasing costs, particularly energy prices, a further price increase will be implemented in the fourth quarter (October to December)".

This second price adjustment for the year, the company says, "will mitigate the increases in operating costs experienced so far this year".
Courts Jamaica’s Net profit of $165 million for the three months ending October 2, 2005 was a 52 per cent improvement over the comparative quarter last year.

The increase was driven by a 24 per cent improvement in the company’s turnover, which moved from $1.11 billion in the corresponding quarter last year, to $1.38 billion in the quarter under review. There was also slower growth in the company’s cost of sales -19 per cent or $141 million - and a 73 per cent reduction ($5.2 million) in finance costs.

Published under Cement News