MANILA, Philippines - Cement giant Holcim Philippines Inc. said it expects 2009 to be a banner year, surpassing its net income and revenue levels last year on robust construction demand.
Holcim chief operating officer Ian Thackwray said sustained public and private construction activities and improved efficiency have contributed to the firm’s record performance this year.
“We have exceeded all our targets. 2009 will be a record year for Holcim Philippines,” Thackwray said.
In the nine months ending September this year, Holcim posted a net income of P2.8 billion, more than double the previous year’s level. For the third quarter alone, the cement firm’s net profit hit P855 million, nearly nine times the P97 million recorded in the same period a year ago.
For next year, Holcim may not be able to replicate its 2009 performance due to the anticipated construction slowdown in the second half of 2010 in view of the May elections, which imposes a ban on public works, as well as inflationary concerns. Demand for the first half next year is seen to be at seven million to eight million tons.
Thackwray expects the first six months of 2010 to be strong amid increased activity on infrastructure with demand seen in the range of seven million to eight million tons. Total industry demand for this year is placed at 14 million tons.
Anticipating a strong first half next year, Holcim is completing the expansion of its Lugait cement facility in Misamis Oriental. It has allotted P1 billion for its capital expenditures next year mainly for plant expansion and equipment upgrade. - Zinnia dela Peña