SGC full-year revenue to be affected by flood impact

SGC full-year revenue to be affected by flood impact
14 October 2013

Siam Cement Group (SCG) expects full year revenue to be slightly lower than original forecasts as flooding hits domestic sales.

In an interview with the Bangkok Post, SCG’s chief executive Kan Trakhulhoon, said sales of cement and building materials have clearly witnessed a slowdown as floods spread to wider areas including the eastern area which is not usually flooded. The decline will result in slightly lower revenue for SCG as a whole, he added.

The flooding in Thailand is affecting 25 provinces (eight in the northeast, six in the north, seven in the central and four in the east) with flooding has begun to recede in Kanchanaburi, Prachuap Khiri Khan, Chumphon, Kalasin, Nakhon Ratchasima, Phayao and Mae Hong Son, according to the Disaster Prevention and Mitigation Department, Ministry of Interior, Thailand.

However Mr Trakhulhoon expects demand to pick up in 2014 on the back of post-flood reconstruction efforts.

Although no SCG facilities have been affected by the recent floods, there could be an issue with logistics if floodwater surrounding the factories does not subside soon, the senior executive noted.

Published under Cement News