Thailand: Siam City Cement profit down 14.5 %

Siam City Cement (SCC) reported a 2016 net profit of THB3.9bn (US$111.45m), down 14.5 per cent YoY due to difficult trading conditions in Thailand.

One-time costs of THB304m associated with acquisitions offset by favourable coal prices, electricity tariff rates and the sale of its stake in Holcim Cement (Bangladesh) Ltd also contributed to the profit drop.

Siva Mahasandana, CEO of SCC, said the company's strategy to expand the business through key investments in Thailand and nearby regional countries had an immediate positive impact on sales.

"We have now secured new and significant footholds in economies growing at a faster rate than Thailand, locking in future export volumes for clinker and allowing existing kilns to continue operating at optimal capacity and efficiency. The full year benefits of these initiatives will continue to flow through into our 2017 performance,” Mr Mahasandana said.