Holcim: Infra development to proceed

Listed cement maker Holcim Philippines Inc. is optimistic the country won’t stop rolling out project after project, specifically on the infrastructure side, no matter who it elects as new President.

“Whoever gets elected would still have to spend on infrastructure,” said Eduardo A. Sahagun, Holcim Philippines president and country CEO, said in a briefing Monday.

He said both public and private sectors would continue investing on the back of strong economic fundamentals that “remain supportive of growth.” He cited, for example, ongoing private public partnership (PPP) projects that have commenced, including the Metro Rail Transit Line 7 of San Miguel Corp.

Sahagun said there could be some temporary slowdown in spending on the part of the government in the last quarter of 2016 through the first quarter of 2017 as the next administration organizes its economic team and strategies.

“We have to make sure things are going to move, especially in the new administration,” Sahagun said.

The firm said net income for the first quarter was flat at P1.5 billion due to the  scheduled maintenance of its Luzon-based plants during the quarter. The Davao plant, on the other hand, was set to undergo maintenance this month, he said.

Without the plant maintenance activities, Sahagun said profit for the first quarter of 2016 could have hit P1.7 billion.

Revenues, meanwhile, jumped 17.2 percent to P10.1 billion from P8.6 billion the previous year.

Sahagun said Holcim Philippines saw a 21-percent increase in demand from institutional clients while the demand from the retail sector increased by 11 percent.

The company’s operating Ebitda (earnings before interest, taxes, depreciation and amortization), meanwhile, also rose by 5.3 percent to P2.5 billion from 2.35 billion.