Holcim books lower profit in H1

MANILA, Philippines - Holcim Philippines, a leading cement manufacturer in the country, reported first half earnings of P3 billion, lower than the P3.32 billion posted in the same period last year.

Company officials attributed the lower profit to the early implementation of plant maintenance activities and higher usage of more expensive importer clinker – a material needed to produce cement -- in the first quarter of the year.

Revenues, on the other hand, rose 6.7 percent to P18 billion.

Despite the lower net income, Holcim is optimistic of its prospects as it eyes new areas of growth following the acquisition of Lafarge’s Star Terminal in Harbor Center, Manila.

Holcim president and CEO Eduardo Sahagun said new opportunities for growth include infrastructure projects under the government’s public-private partnership program as well as big-ticket water projects being privatized by the government.

The company is also confident it could meet its target to increase its capacity to 10 million metric tons a year as early as the latter part of 2016 or ahead of the 2017 target.

The additional capacity would come from the reopening of its Calaca and Mabini cement facilities in Batangas, which should add roughly 1.5 MMT capacity. The balance would from the Star Terminal in Manila.

He said the increase in capacity would require roughly $30 million to $40 million in investment.

“Further improving the efficiency of our production facilities has been the focus of management. Our investment in facility upgrades allows our plants to run longer before scheduled maintenance activities. This will pay off in the current market environment as we are able to meet the demands of customers,” Sahagun said.

“We understand that contractors are most concerned with steady cement supply and this is what we are trying to address in the second half. We will further improve our ability to supply our customers so that they finish their projects on time,” he added.

The company presently produces four cement products: Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X. Its products are sold in 40 kg bags, tonner bags and in bulk.

Holcim operates four cement plants in La Union, Bulacan, Misamis Oriental and Davao. It is a member of the newly-merged entity LafargeHolcim Group, a global leader in the building materials industry with 115,000 employees in 90 countries.