Holcim reports drop in profits

MANILA, Philippines—Leading cement manufacturer Holcim Philippines’ third-quarter net profit dipped by 26.6-percent year-on-year to P625.91 million as the typhoon season tempered domestic construction activities.

For the nine-month period ending September, net profit shrunk by 43.5 percent to P2.07 billion as the sluggish volume in the third quarter extended the slump caused by the contraction in government spending in the first semester.

In a press statement, Holcim reported that successive weather disturbances during the third quarter interrupted the momentum of construction activities that were beginning to take off, following government efforts to step up infrastructure spending. As such, Holcim’s sales volumes declined by 6 percent during the third quarter compared with the same period last year.

But Holcim Philippines’ chief operating officer Roland van Wijnen noted that the volume decline in the third quarter was slower than in the previous two quarters, giving credit to the government’s move to increase spending for infrastructure.

“The increased implementation of government projects in the third quarter bodes well for the company and the industry in general,” Van Vijnen said. “This would have pushed up monthly volumes had it not been for the typhoons.”  He added that private construction remained vigorous, driven by continuing demand in business process outsourcing and tourism-related facilities.

Holcim’s net sales for the third quarter dipped to P5.34 billion from P5.77 billion a year ago.  For the nine-month period, net sales fell to P16.5 billion from P18.65 billion a year ago.