Holcim Philippines profits sustain rise amid rains, plant maintenance
Key messages
• Holcim Philippines’s strong financial performance continued in Q3 with the steady growth in volumes and stable prices despite the traditionally lean period
• Seasonal maintenance activities limited production, but the company ensured market will be amply supplied
• With the scheduled shutdowns finished and clearer weather ahead, Holcim Philippines expects to sustain performance to build momentum heading into 2014
Leading cement manufacturer Holcim Philippines’s excellent financial performance continued in the third quarter, even as the company‘s plant operations performed their scheduled maintenance activities during the rainy season.
Third quarter sales revenues grew by 7.4% to Php 6.9 billion from the same period last year as demand and prices remained steady with both the private and public sector pushing ahead with projects. Profits, meanwhile, rose 34.2% to Php 691.2 million versus the third quarter of 2012, helped by the company’s continuing revenue growth, cost management efforts and efficiency initiatives.
With these, Holcim Philippines nine-month tally for revenues have grown by 9.5% to Php 22.1 billion from, while profits rose by 48% to Php 3.7 billion year-on-year.
Holcim Philippines’s plants went on their seasonal repairs in the third quarter, but the company ensured the markets were supported amid the continued strong public and private demand. The government reported that infrastructure and capital outlays grew by Php 38.5% Php169.6 billion from last year’s P122.4 billion.
“The robust construction activities again pushed demand to outperform our expectations in the third quarter,” said HolcimPhilippinesChief Executive Officer Ed Sahagun.
The Holcim Philippines's chief said the company has mostly completed its maintenance activities. He added that the company’s plants in La Union and Misamis Oriental will have higher production capacities because projects to improve efficiencies were also implemented during the maintenance breaks.
“We’re proud to have completed our scheduled shutdowns safely. With these done, we are now focusing our attention to regular operations. These initiatives plus the start of our Mabini operations prepares us well for the expected upswing in demand. I expect us to finish the year strong so we can build momentum going into 2014,” he said.
