Bangkok--26 Jan--SCG
The Siam Cement Group (SCG) announced the FY2006 operating performance, showing increased sales, but with lower net profit, attributed to lower performances. SCG has further proposed a FY2006 dividend payment of 15.0 baht per share.
Mr. Kan Trakulhoon, President of The Siam Cement Public Company Limited (SCC), disclosed the unaudited consolidated financial statements for SCC and its subsidiaries for the fiscal year 2006 which showed total sales of 258,175 million baht, representing an increase of 18% y-o-y. However, the net profit dropped to 29,451 million baht, down 9 % y-o-y, while the operating profit before non-recurring items decreased 2% y-o-y. to 30,157 million baht due to higher energy prices in addition to the decrease in domestic demand for cement and building products, despite higher chemicals margins.
Moreover, the non-recurring items occurred during the year were 3,400 million baht from allowance for assets impairment in the CRT business and 2,200 million baht gain for the divestment of shares in Millennium Steel Public Company Limited (MS) and The Siam United Steel (1995) Co., Ltd.
On a y-o-y basis, the fourth quarter 2006 total sales was 62,593 million baht, an 25% increase. However, the net profit dropped 8 % to 4,675 million baht due to lower performance in all business except the chemicals business. The operating profit before non-recurring items recorded 5,030 million baht, which is close to the same period last year.
The unaudited total assets of SCC and its subsidiaries as of December 31, 2006 amounted to 221,897 million baht.
The operating results of SCG’s major businesses for FY2006 are as follows:
The chemicals business recorded total sales of 122,645 million baht, an increase of 43% y-o-y due to higher increased sales volume and the consolidation of Thai Plastic and Chemicals Public Company Limited. Operating Profit increased 8% y-o-y as a result increased margins, as the price gap between naphtha to HDPE increased.
The paper business recorded total sales of 42,645 million baht, an increase of 6% y-o-y due to increased sales volume and the consolidation of Thai British Security Printing Public Company Limited (TBSP)’s accounts. However, Operating Profit decreased 3% y-o-y as a result of increased depreciation and tax expenses.
The cement business recorded total sales of 44,123 million baht, an increase of 6% y-o-y on increased exports. However, Operating Profit decreased 16% y-o-y as a result of increased energy expenses.
As a result of the company’s financial position and operating performance for the full year 2006, the Board of Directors of SCC has requested for approval, at the ordinary general meeting of shareholders on March 28, 2007, a full year dividend payment of 15.0 baht per share. Previously, the company paid an interim dividend payment of 7.5 baht per share on August 22, and will pay an additional year-end 2006 dividend payment of 7.50 baht on April 26, 2007 to the shareholders listed in the share register book closed for share transfer on April 12, 2007.