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Siam City Cement higher year-on-year net profit

Thailand“s second biggest cement producer Siam City Cement (SCCC) posted a sharply higher year-on-year net profit for the third quarter, but it still fell below market expectations.
The company said…

Thailand“s second biggest cement producer Siam City Cement (SCCC) posted a sharply higher year-on-year net profit for the third quarter, but it still fell below market expectations. The company said in a statement to the Stock Exchange of Thailand its net profit for the period was THB 417.53 million, below market forecasts ranging from THB 500 to THB 580 million, and a 49% drop from the second quarter. SCCC posted a net profit of only THB 16.19 million in the third quarter last year. Analysts said SCCC“s third-quarter earnings“ were weaker than expected in part due to the company“s provisioning for possible spoiled cement stocks. “The third quarter is the weakest of any year as it is the rainy season… besides the company also set aside about THB 111 million provisioning for its obsolete stocks,” said Sansanee Srijamjuree, an analyst at KGI Securities. SCCC attributed the third-quarter profit jump to a 17% year-on-year rise in revenues to THB 3.94 billion, mainly due to increased sales and reduced interest expenses. In the first nine months, the firm posted a THB 1.98 billion net, more than double last year“s THB 883.01 million profit. Thailand“s building materials companies have suffered from sluggish growth in the wake of the 1997/98 economic crisis along with the country“s embattled property sector, but an upturn in Bangkok“s housing market has improved sales. SCCC“s bigger rival Siam Cement , Thailand“s largest industrial conglomerate, last month reported a net profit of THB 1.39 billion in the third quarter, around double most analysts“ forecasts of THB 562-682 million. But Siam Cement also posted a sharp quarter-on-quarter drop in the thrid quarter this year, from THB 2.36 billion in the previous period.

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