Higher sales hike ChemrezTech's earnings

Listed biodiesel, resins and oleochemical producer, Chemrez Technologies Inc. said its net income in the first nine months of the year posted modest growth as sales also gained marginally. ChemrezTech told the Philippine Stock Exchange that its unaudited consolidated net income rose three percent to P371.9 million from P359.4 million for the same period last year. Conoslidated sales, meanwhile, reached P3.6 billion, higher by one percent than the P3.55 billion recorded for the same period in 2008. The company said its sales volume for the first nine months actually jumped 63 percent from the same period last year. This was primarily due to the implementation of B2 (2 percent biodiesel blend for all diesel) effective February 6, 2009. Despite the big growth in sales volume, peso sales did not significantly increase. This is because of lower selling prices amidst weak global demand and a more intensely competitive market environment. On the other hand, exports of other oleochemical products experienced robust growth and good prices, pushed by the high demand for fatty alcohols for the detergent, soap and cosmetic sectors in the export market. The various resins product groups have registered mixed sales volume result for the first nine months of 2009. ChemrezTech also said it maintained its substantial lead in the overall market in the Philippines. Net profit margin remained steady at 10 percent while adjusted earnings per share for the first nine months of 2009 slightly increased to P0.28 from P0.27 for the same period in 2008. - GMANews.TV