Holcim profit jumps 34% to P691M in 3rd quarter

MANILA, Philippines - The ongoing construction boom pushed the third quarter earnings of cement manufacturer Holcim Philippines Inc. 34.2 percent higher to P691.2 million.

Holcim’s earnings jump was “helped by the company’s continuing revenue growth, cost management efforts and efficiency initiatives.”

Net sales in the July to September period picked up more than seven percent to P6.86 billion on the back of steady demand and prices as both the private and public sector pushed ahead with projects.

The local unit of the Switzerland-based global cement giant is building up its momentum heading into next year, a top company official said.

“The robust construction activities again pushed demand to outperform our expectation in the third quarter,” said Holcim Philippines CEO Eduardo Sahagun.

Holcim Philippines said its operations was supported by the continued strong public and private demand. The government reported that infrastructure and capital outlays spiked 38.5 percent to P169.6 billion in the third quarter from last year’s P122.4 billion.

As a result Holcim Philippines’ nine-month income surged 48 percent to P3.74 billion from P2.52 billion last year. Its revenues increased nearly 10 percent to P22.14 billion from P20.21 billion.

“We’re proud to have completed our scheduled shutdowns safely. With these done, we are now focusing our attention to regular operations,” Sahagun said.

The cement maker performed its scheduled maintenance activities during the rainy season.

“These initiatives plus the start of our Mabini operations prepare us well for the expected upswing in demand,” Sahagun said.

“I expect us to finish the year strong so we can build momentum going into 2014,” he added.

Furthermore, the company’s plants in La Union and Misamis Oriental will have higher production capacities as efficiency-enhancing projects were implemented during the maintenance breaks.

The company is finalizing the bidding for a $550-million cement factory in Bulacan that will start its 2.5-million metric ton per year production in 2016.

Holcim Philippines produces four cement products: Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X that are sold in bags, tonner bags and in bulk.

Its parent firm is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as downstream activities such as ready-mix concrete and asphalt. The group holds majority and minority interests in more than 70 countries on all continents.