Siam Cement posts 43% drop in quarterly profit, Thailand

Thai conglomerate Siam Cement posted a 43 per cent fall in quarterly profit due to weak demand and a drop in the value of its petrochemical inventories.

During the April-June period, net profit of THB4.28bn (US$135m), down from THB7.49bn a year earlier.

The company’s earnings are expected to improve in the second half when demand should improve on the back of rebuilding work as the country's economy recovers from severe floods last year that shut factories at carmakers and disk-drive manufacturers.

Siam Cement  said in a statement it booked an inventory loss of THB2bn from the chemical business after prices fell sharply in line with global oil prices.

Analysts expect Siam Cement's earnings to hit bottom in the second quarter, typically the low season for cement and paper businesses, while margins of its petrochemical products should recover in the second half.