The Siam Cement Group (Bangkok, Thailand) announced operating performance for the first quarter of fiscal 2007 decreased from the previous year, noting that the chemicals business was still doing well. The group pursued its cost efficiency and asset optimisation policy during a period of economic slowdown.
Kan Trakulhoon, President of The Siam Cement Public Co Ltd (SCC), disclosed the unreviewed consolidated financial statements for SCC and its subsidiaries for the first quarter of fiscal year 2007 which showed total sales of 65.337 billion baht, an increase of 2% year-on-year, while net profit registered 8.213 billion baht, down 14% year-on-year. This compares to the one-time gain of 1.4 billion baht from the Bangkok Synthetic (BST) transaction in Q1/2006, while the general slowdown in the domestic economy had affected the cement and building materials businesses.
On a quarterly basis, the total sales showed an increase of 4% from the last quarter, assisted by increased demand for cement and building materials following the poor Q4/2006 results which were affected by flooding. Net profit showed an increase of 76% quarter to quarter, reflecting the asset impairment from the CRT business in Q4/2006.
The total assets of SCC and its subsidiaries as of 31 March 2007 amounted to 247.038 billion baht.
The operating results of SCG’s major businesses for Q1/2007 were as follows:
The Chemicals Business recorded total sales of 29.604 billion baht, relatively flat y-o-y and q-o-q. The operating profit decreased 32% y-o-y, in light of the one-time gain from the BST transaction in the previous year.
The Paper Business recorded total sales of 10.923 billion baht, an increase of 2% y-o-y and 3% q-o-q, thanks to the increased sales volume. The operating profit decreased 3% y-o-y due to squeezed margins from feedstock costs and lower earnings from US$ linked sales, while increasing 31% q-o-q in light of energy savings from the full utilisation of the energy efficient boilers.
The Cement Business recorded total sales of 11.459 billion baht, a drop of 2% y-o-y due to the lack of demand from the residential and government sectors, while increasing 11% q-o-q on the recovery from the flooding effect of the previous quarter. Operating profit decreased 13% y-o-y on the lower domestic sales volume.
Through its Cementhai business, Siam Cement owns or part owns clay roofing tile companies Thai Ceramic Roofing Tiles, Lafarge Siam Roofing and PT M Class Industry (Indonesia); ceramic tile companies Thai Ceramic Co (COTTO brand), Sosuco Ceramic Co, PT Surya Siam Keramik (Indonesia) and Mariwasa Manufacturing (Philippines); and ceramic sanitaryware manufacturer Siam Sanitaryware Co (TOTO brand).
There are approximately 65 Thai baht to £1 sterling.