Bangkok--Feb 16--Weber Shandwick
SIAM CITY CEMENT NET INCOME RISES BY 26% IN 2004 CONSOLIDATED NET SALES EXCEED THB 20 BILLION FOR FIRST TIME
Siam City Cement Public Company Limited (SCCC), Thailand’s second-largest cement company, today reported final figures for 2004 to the Stock Exchange of Thailand (SET).
Highlights include net income of THB 4,141 million on net sales of THB 20,772 million, representing a jump in net income of 26% over that returned in 2003 (THB 3,288 million).
“We are very pleased with the final results for 2004, which yet again illustrate the operational vigour that characterises Siam City Cement. The company has now recorded a steady annual increase in net income for the fifth consecutive year, a period that has seen net income more than quadruple,” said SCCC Managing Director Leo Mittelholzer.
Robust growth in SCCC’s cement activities during 2004 helped lift consolidated net sales by almost 20% over the total achieved in 2003 (THB 17,469 million). EBITDA for 2004 of THB 7,256 were 21% higher than in 2003 (THB 6,018 million).
An interim dividend payment of THB 6 per share was paid to shareholders on 1st October, 2004. A final dividend payment for the year 2004 is to be submitted to the Board for approval in March, 2005. [Total dividends of THB 9 and THB 8 were paid in 2003 and 2002 respectively.
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SCCC’s sales of cement and clinker to the domestic and export markets in 2004 totaled 10.4 million tonnes, comprising domestic sales of 7.1 million tonnes and exports of 3.3 million tonnes. The growth in demand lead, in the last quarter of the year, to the company’s Saraburi manufacturing operations operating at full capacity with the re-start of Plant No 1. SCCC now has an annual production capacity of 14.5 million tonnes of cement.
“Energy and transportation costs presented challenges for the whole industry last year, and will continue to do so during 2005, but we do not expect to see any change in the list price of cement. This highlights the importance of economies of scale, and of measures, such as our Alternative Fuels and Raw Materials (AFR) programme, to control fuel costs,” said Mr Mittelholzer.
During 2004 SCCC’s AFR programme enabled savings of approximately 6% on energy costs. The company has now also established a dedicated business unit to focus on maximizing the potential benefits of AFR usage.
Commenting on the performance of SCCC subsidiaries in 2004, Mr Mittelholzer said:
“Our subsidiaries performed well in 2004. In particular, the innovative wood replacement products of ConWOOD continued to meet with a very positive response from the market. We have therefore increased our capital investment in the company in order to double production capacity to 90,000 tonnes by mid-year. We are also very pleased with progress in the ready mix concrete business. The sector saw growth last year of around 30%, which we expect to see maintained this year. We are taking steps to increase Siam City Concrete Co Ltd’s share of this important market, a move which we believe will add further value to the services we offer our customers.”
Reflecting moves to enhance the focus on core business activities, SCCC divested subsidiary Royal Porcelain Co Ltd on 30th December 2004.
Siam City Cement was established in 1969 and listed on the SET in 1977. In 1998 Holcim of Switzerland, one of the world’s largest cement companies, became a shareholder, and an important partner. In 2003, SCCC was named Best Company in Thailand in the annual Euromoney Asian company survey.
For more information on Siam City Cement
please visit www.siamcitycement.com.
Dr.Staporn Phettongkam
Secretary General & Corporate Communications
Siam City Cement Plc.
Tel. 0 2263 0535 Ext. 1100, 1101
Nuannarin Chaiyen, Lakpilai Worasaphya
Weber Shandwick (Thailand) Limited
Phone: 02 257 0300 # 316, 312
Fax: 02 257 0311
E-mail: [email protected],
[email protected] End.