Holcim profit falls to P1.27B

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Holcim profit falls to P1.27B
Posted: 1:49 AM | Apr. 19, 2006

Inquirer

CEMENT maker Holcim Philippines Inc. said its net income last year dropped nine percent to P1.27 billion from P1.4 billion in 2004, with soft demand.

Revenues increased 6.4 percent year-on-year to P14.15 billion, it said.

In a report filed with the Securities and Exchange Commission, the company said a continued rise in fuel prices, political tension, and insufficient infrastructure spending contributed to decreasing of demand for cement.

Demand for cement weakened by 4.3 percent last year from 2004, it said.

Holcim said a cost-reduction program cut its operating expenses by P354 million.

It added it increased export volume last year to 1.76 million metric tons from 1.34 million metric tons in 2004.

Last year, Holcim paid P2.8 billion of its maturing loans, which reduced interest expenses by P212 million.

In December, the concrete raw meal silo at its Davao City plant collapsed. The company said the incident was being investigated.

Cement supply in the southern city is assured by shipping clinker and cement from other Holcim plants in Lugait town in Misamis Oriental province and from Bulacan province, north of Manila. Elizabeth L. Sanchez, with INQ7.net