Bangkok--11 Aug--PR & Associates
SCCC reported total sales of THB 12,061 million for the first half of 2006, up six percent from the same period in 2005. The volume of domestic cement sales decreased from 4.4 million tonnes in the first half of 2005 to 4.2 million tonnes this year while the volume of exports rose 9 percent.
In the first half of 2006 SCCC’s EBITDA was THB 3,508 million, down 6 percent from the same period in 2005. SCCC made net profits of THB 2,173 million, down 8 percent from net profits of THB 2,372 in the first half of 2005.
During the past six months Siam City Cement faced a difficult business environment due to a number of reasons including; cost increases, political uncertainty, rising interest rates, and dampened consumer confidence. As a result the economy has witnessed a slow down of consumption and investment in both public and private sectors; with the outlook remaining cloudy until the end of the year.
SCCC has seen some upward trend in the cement price but the increase was not sufficient to cover rising costs (fuel, electricity, transport). To cope with the challenging environment we are focusing on improvements in operational efficiency. SCCC has paid special attention to achieving both optimum product mix and full utilization through balancing domestic and export sales.
Continuous efforts are being made to contain operational cost increases across the board and to promote more use of alternative energy sources. EcoSiam, our business unit founded with the objective to help improve SCCC’s cost competitiveness through waste management services is now processing increased volumes of alternative fuels.
CONWOOD, our subsidiary whose focus is in wood replacement products, has expanded its product line with 9 new products which were introduced to the market this year. Our Aggregate and Sand business unit will commence sand operations in September 2006. In addition, we have identified and are implementing steps to improve internal business process alignment with our ready-mixed concrete subsidiary.
The company will continue with a cautious management approach, focusing on margin and cost management while using innovative ideas to find new markets as well as emphasize on Occupational Health and Safety in all operations by using 12 golden rules. Most important we are adhering to our customer-centric philosophy. We are confident this will enable SCCC to keep up its performance despite the challenging environment ahead.
Siam City Cement Public Company Limited was founded in 1969 and listed on the Stock Exchange of Thailand in 1977. Holcim Ltd, one of the largest cement companies in the world, became a major shareholder in 1998.
For further information please contact:
Dr. Staporn Phettongkam
Secretary General & Corporate Communications
Siam City Cement Plc.
Tel. 0 2685 8000 Ext. 1100, 1101