Siam Cement has confirmed a 14 per cent drop in its net profit in the second quarter of 2014. Siam Cement posted a net profit of US$268 mn in the April-June 2014 period, down from Euro310 mn during the same period of 2013. Apart from months of political unrest, weak domestic cement demand and lower chemical earnings have hit the bottomline. According to Siam Cement?s Chief Executive, Kan Trakulhoon, drop in construction activity and a lack of new infrastructure projects will bring down Thailand?s domestic cement demand growth to a meagre 1 per cent in 2014.
?Domestic cement demand should drop by 2-3 per cent in the third quarter of 2014 from a year earlier, while growth in the fourth quarter of 2014 should be flat. We export more to ASEAN nations, but we don?t make much profit from exports,? said Trakulhoon. He added that cement demand in Thailand for the whole of 2014 would grow by 0-1 per cent.
The company is planning to grow by acquiring other cement plants near its target market. ?There are many opportunities in the ASEAN region, including mergers and acquisitions,? said Trakulhoon. ?There is no limit. It depends on how fast we acquire the companies. We are open to any acquisition proposals.? Trakulhoon added that Siam Cement?s primary focus outside of Thailand is on companies in Vietnam and Indonesia.
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