SCJ’s reports 13% rise in net sales on improved product prices

30-Oct-09

Siam Cement Group (SCG), Thailand’s largest industrial conglomerate has reported net sales of 64.54 billion baht, a 13% rise in Q3-09 from the previous quarter, on improved product prices. Sales, however, dropped 19% year-on-year due to higher prices witnessed last year. SCG's Q3-09 net profit was 6.99 bln baht, against 5.94 bln baht recorded last year. 9 month consolidated net profit was 19 bln baht, down 5% from 20.2 bln in the same period last year. SCG is hopeful of a better fourth quarter when some of its businesses should turn around and resume their upward trend. Revenue in the next quarter is expected to be pressured by the petrochemical business, which accounts for almost 40% for the group's revenue, because global prices have slumped and the spread margin has narrowed. Annual sales is expected to contract by about 20%, but net profit is likely to rise on better product prices and cheaper raw materials. For next year, the uncertainty around Map Ta Phut will continue to be the main concern as SCG's ongoing projects in the industrial estate are worth 106 billion baht in total. If the projects due to begin operations next year are delayed, the expected annual income of 60 billion baht from them will be missing from 2010's performance.