Holcim net income rises 8% to P4.04 B in first 9 months

MANILA, Philippines - The onset of the rainy season failed to dampen Holcim Philippines Inc.’s performance in the third quarter as strong cement demand continued to propel the company’s sales and income.

Holcim Philippines said its net income in the first nine months of the year jumped eight percent to P4.04 billion from P3.75 billion a year ago on the back of strong sales.

Revenues in the nine-month period increased 13 percent to P24.97 billion from P22.14 billion last year.

Holcim Philippines president and chief executive officer Eduardo Sahagun said cement demand remains steady nationwide due to the steady pace of construction from the private sector and government.

Sahagun said there were also fewer interruptions to construction activity this rainy season with lesser typhoons compared to last year.

For the July to September period alone, Holcim Philippines’ earnings grew to P722 million from P691 million during the same period last year.

Third quarter sales revenues also rose to P8.1 billion from P6.9 billion last year as brisk sales continued in the period, when construction activity usually slows with the onset of rains.

With the company’s plants undergoing maintenance activities during the third quarter, Sahagun said production of its own clinker was supplemented by imports to support the strong market and ensure adequate supply.

Sahagun said heavy demand for cement is seen to persist in the medium term, as the private sector and government are expected to sustain rollout of project to fuel the robust construction activity throughout the country.

“The country needs every drop of cement that the country can produce,” he said.

Holcim Philippines is the local unit of 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 company is currently planning to acquire several assets of Lafarge Republic Inc. (LRI) following a recent multi-billion merger of their parent companies that created the largest cement manufacturer in the world.

Among the assets being eyed for purchase include LRI’s investments in Lafarge Iligan Inc, Lafarge Mindanao Inc, Lafarge Republic Aggregates Inc., as well as Star Terminal at the Harbour Centre in Manila.

Sahagun said Holcim is currently evaluating the acquisition cost for the planned purchase, but expects to make the final offer by the middle part of next year.

In July this year, the Philippine units of Holcim of Switzerland and Lafarge of France started charting plans to consolidate their operations as part of a merger between the two global cement giants.