Holcim posts P3.1-billion net profit in 2009

MANILA, Philippines - Holcim Philippines, Inc. posted a net income of P3.1 billion in 2009, more than double the P1.3 billion recorded a year earlier on record sales volume.

In a statement, Holcim said improved manufacturing efficiencies resulted in increased revenues of P21.9 billion or 20 percent higher than the previous year. Sales volume rose 16 percent, outpacing the industry’s 11 percent — the highest growth experienced by the local sector since the 1997 Asian financial crisis.

Double-digit volume growth was achieved across all regions, particularly in Mindanao were several major infrastructure projects were implemented. Sales in Mindanao grew 25 percent

“Having two plants in Mindanao was a tremendous advantage for Holcim, as it was able to assure customers of reliable cement supply,” the company said.

Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped to P6.9 billion, up 61 percent from the year earlier level.

While cement demand has been normally cyclical in the past years, peaking during the summer months, it remained high throughout 2009, even into the rainy season and Christmas holidays.

“In such a period of sustained demand, it was extremely important for us to keep our plants running efficiently and reliably at all times. And we were able to rise to this challenge as a result of many significant operational improvements that have been achieved by our manufacturing teams over the past years,” said Ian S. Thackwray, chief operating officer of Holcim.

To satisfy the ever changing needs of its customers, Holcim has developed new products, among which is Holcim 4x, a high performance Portland cement for ready-mix concrete applications, especially for high-rise buildings, bridges and vertical structures.

Holcim likewise developed an integrated approach in homebuilding to provide end-users with complete services from planning all the way to implementation.

As of March 10, 2009, HPI was 60.55 percent owned by Union Cement Holdings Corp., 24.09 percent by Cemco and 9.22 percent by Sumitomo Osaka Cement Co., Ltd.

Formerly Union Cement Corp., Holcim has four production facilities, one cement grinding mill, three ports, four storage and distribution terminals. It also owns bulk cement terminals in Iloilo, Bacolod, Batangas, and General Santos City.