Union posts P51-M income in 2002

Union Cement Corp. (UNION) reported a significant increase in 2002 revenues following the consolidation of Alsons Cement into its operation and the turnaround of cement demand after five years of continuous decline since the start of the Asian financial crisis in July 1997.

"Union Cement capitalized on its strong balance sheet to take advantage of the growth opportunities in the market place. The acquisition of Alsons Cement was one of those opportunities that the company identified, which is considered very strategic and timely considering the turnaround of market demand and the reduction in imports due to the provisional tariff of P20.60 per bag imported by the government," said Union’s Chief Operating Officer, Paul O’Callaghan.

As reported by the company in its special shareholders meeting in September 2002, the acquisition of Alsons Cement by UNION was done through a share for share swap transaction. Only a small amount of cash was used to pay minority shareholders who availed of the tender offer for cash instead of Union shares.

UNION ended the year with a consolidated net income of P51 million after deducting depreciation, interest and foreign exchange losses of P2.7 billion. On a parent company level, Union Cement made P311 million in net profit that is at par with last year’s net.

UNION is a fully integrated cement manufacturing operation with plants strategically located in the Philippines: two in Mindanao, in Lugait, Misamis Oriental and Davao City; and two in Luzon, in La Union and Bulacan.

UNION is a member of Holcim – one of the world’s leading suppliers of cement as well as aggregates, concrete and construction — related services, with interest in over 70 countries in all continents.