Holcim profit up due to high cement sales

Strong construction activity in both public and private sectors last year had resulted in significant gains in sales and earnings for listed cement manufacturer Holcim Philippines, Inc. Holcim's sales revenues grew 26% to P27.16 billion from P21.62 billion, driving its bottom line to surge to P3.63 billion from P2 billion in 2011. The Cement Manufacturers Association (CeMap) reported an 18% increase in market demand last year, the highest in 15 years. Holcim CEO Eduardo Sahagun said the company benefited from the public infrastructure spending and the developments of private sector, as well as from the improvement in operating and process efficiencies and the management of fixed and support costs. For this year, Holcim will take advantage of the continuous construction activity—as it is seen to remain strong given the positive economic environment—by increasing its capacity. The company is set to open a grinding facility in Mabini, Batangas, by the third quarter. By April, it is set to present a proposal for anew brownfield plant in Norzagaray, Bulacan, to its board and principals in Zurich. Sahagun is optimistic that 2013 will continue to see robust construction activities, particularly with the start of several Private-Public Partnership Projects. He said the continued growth of the outsourcing industry and remittances from overseas Filipino workers, plus the strong macroeconomic indicators such as low and stable inflation and interest rates, will fuel Holcim this year. — KBK, GMA News