Bangkok--Feb 17--Siam City Cement
Thailands second largest cement company, Siam City Cement (SCCC) today announced its financial results for 2005 to the Stock Exchange of Thailand. Key points for last year's perfomance were the growth of domestic and export volumes, the sharp increase of energy costs (both fuel and electricity) and the continued pressure on domestic sales prices.
Consolidated net sales were THB 22.4 billion, an increase of eight percent over 2004. Domestic cement sales rose from 7.1 million tons to 7.8 million tons in the same period, while export jumped by almost fifty percent.
The Company recorded a net profit of THB 4,073 million, representing a slight decrease from THB 4,141 million in 2004. Focusing on the core business led to the disposal of Royal Porcelain at the end of 2004. Its total revenues and net profit as well as the gain on sale were included in the 2004 consolidated statement of earnings. Considering this change in scope of consolidation, net income 2005 grew by 4% and earnings per share by 5% (2004 adjusted: THB 3,912 million). Furthermore, the Company sold its investment in Karat Faucet to a third party on December 29, 2005.
"Siam City Cement managed to maintain its profitability in absolute terms despite domestic margin pressures. Essentially, this was because of the volume and price of exports to the US and the Middle East, compensated for the limited margin recovery in the domestic market against surging prices for fuel and electricity. Full capacity utilisation of our plants combined with better export prices allowed SCCC to successfully manage the feat," explained company CEO, Leo Mittelholzer.
The company-wide re-branding aimed at repositioning the company as the preferred "the cement solution provider" through the "as I wish" campaign continues our transformation into a customer-centric organisation. Development of our staff through the process of continous learning is helping to realize this goal as well as securing our long-term competitiveness.
SCCC's subsidiary companies continue to grow solidly, with the ready-mix concrete business, Siam City Concrete, commissioning new plants in Greater Bangkok and the East of Thailand. ConWood has doubled its production capacity.
2005 saw the establishment of the Ecosiam business unit with the aim to develop its ' Total service concept ' in its unique to Thailand "Alternative Fuels and Raw Materials" coprocessing programm. At Saraburi a series of investments (approx. 10 Mio US$ for 2006) has been committed to enhance this opportunity.
Continous improvement in Occupational Health and Safety remains a priority for SCCC in order to effectively manage risk, eliminate fatalities and provide safe and healthy work places.
Exploring creative ways to defer costs, while expanding initiatives to streamline operations and develop new markets, will continue to be hallmarks of SCCC's strategy to move forward.
For more information on Siam City Cement please visit www.siamcitycement.com.
For further information please contact:
Dr. Staporn Phettongkam
Secretary General & Corporate Communications
Siam City Cement Plc.
Tel. 0 2685 8000 Ext. 1100, 1101 End.