Malaysia: Lafarge takes 1Q16 hit on net profits

Malaysia: Lafarge takes 1Q16 hit on net profits
26 May 2016

Lafarge Malaysia Bhd is optimistic about its prospects this year despite having had a challenging 1Q16.
The company's net profit fell nearly 72 per cent to US$5m in the first quarter of this year from US$17.9m in the same period a year earlier.

President and CEO, Thierry Legrand, attributed this to lower contribution from the cement segment, following continued price competition and one-off integration costs following the acquisition of Holcim (Malaysia) Sdn Bhd.

"But are we are well-positioned and our merger with Holcim gives us the edge. With the wider network and cost savings, we are ready for more intense competition," he said after Lafarge's annual general meeting.

"We are also involved in numerous other projects, which include Tenaga Nasional Bhd's Jimah power plant which has a long-term contribution," said Mr Legrand.

In November last year, Lafarge completed the acquisition of Holcim from PT Holcim Indonesia for MYR325.5m (US$79.4m), ramping up its installed cement capacity to 14.14Mta from 12.95Mta before the acquisition.

It currently has three integrated cement plants, two grinding stations, more than 40 ready-mix concrete batching plants and six aggregate quarries in Malaysia.

It also operates a bulk import terminal in Singapore as well holding a stake in Singapore-based ready-mixed concrete company Alliance Concrete.

Published under Cement News