Mindanao infrastructure projects boost Holcim's profits
11/16/2009 | 09:58 PM
The Philippine unit of Switzerland-based Holcim Group said earnings surged by more than nine times after its cement products were used by big-ticket government projects.
Profits of Holcim Philippines, which runs six facilities in the country, reached P855 million from July to September this year, nearly nine times the P97 million it earned last year.
As a result, earnings from January to September this year surged to P2.8 billion, more than double the P1.3 billion it earned during the same period last year, the company said in a statement.
Cash flow generated from its operations reached P5.8 billion during the nine-month period, the company said.
Revenues reached P5.5 billion in the third quarter, 30 percent higher than last year, despite being a traditionally low season for the cement industry.
For the nine-month period, revenues reached P17 billion, up 23 percent from last year.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) increased 60 percent to P5.8 billion, from P3.6 billion last year, the company said.
The company “enjoys a strategic advantage" in Mindanao, since it maintains cement plants in Davao City and Lugait, Misamis Oriental, said Holcim Philippines chief operating officer Ian Thackwray.
As a result, it was able to sell its products to big-ticket projects in the island, including the Lagundingan airport, Cagayan de Oro port, and major roads and bridges in Davao Oriental, Maguindanao, and Agusan del Norte, the company said.
Industry demand for cement expanded by a monthly average of 18 percent, driven by government spending for infrastructure projects as well as private sector-led initiatives, the company said.
“The rainy season is historically a dry period for the cement industry," said Thackwray. “But there was no such downtrend this year and, in fact, we experienced volume growth across all regions."
Besides employing 1,500 workers, Holcim Philippines has cement plants in La Union, Bulacan, Davao, Misamis Oriental, Taguig, and Parañaque. - GMANews.TV
Profits of Holcim Philippines, which runs six facilities in the country, reached P855 million from July to September this year, nearly nine times the P97 million it earned last year.
As a result, earnings from January to September this year surged to P2.8 billion, more than double the P1.3 billion it earned during the same period last year, the company said in a statement.
Cash flow generated from its operations reached P5.8 billion during the nine-month period, the company said.
Revenues reached P5.5 billion in the third quarter, 30 percent higher than last year, despite being a traditionally low season for the cement industry.
For the nine-month period, revenues reached P17 billion, up 23 percent from last year.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) increased 60 percent to P5.8 billion, from P3.6 billion last year, the company said.
The company “enjoys a strategic advantage" in Mindanao, since it maintains cement plants in Davao City and Lugait, Misamis Oriental, said Holcim Philippines chief operating officer Ian Thackwray.
As a result, it was able to sell its products to big-ticket projects in the island, including the Lagundingan airport, Cagayan de Oro port, and major roads and bridges in Davao Oriental, Maguindanao, and Agusan del Norte, the company said.
Industry demand for cement expanded by a monthly average of 18 percent, driven by government spending for infrastructure projects as well as private sector-led initiatives, the company said.
“The rainy season is historically a dry period for the cement industry," said Thackwray. “But there was no such downtrend this year and, in fact, we experienced volume growth across all regions."
Besides employing 1,500 workers, Holcim Philippines has cement plants in La Union, Bulacan, Davao, Misamis Oriental, Taguig, and Parañaque. - GMANews.TV
