(Updates with Kan’s comments in third, fourth paragraphs.)
Oct. 26 (Bloomberg) -- Siam Cement Pcl, Thailand’s fifth- largest publicly traded company by market value, said third- quarter profit rose 12 percent, less than most analysts estimated, as costs and expenses increased.
Net income was 7.4 billion baht ($239 million) or 6.15 baht per share, in the three months through September, compared with 6.56 billion baht or 5.46 baht per share a year earlier, the company said in a regulatory filing. That was lower than the 8 billion-baht average estimate of six analysts in a Bloomberg survey.
Siam Cement, controlled by King Bhumibol Adulyadej’s asset- management arm, has increased output of petrochemicals, cement and paper in Thailand and Southeast Asia to tap economic growth in the region. Sales in the fourth quarter may drop by as much as 15 percent from a year earlier as the nation’s worst flooding in five decades cut demand for its cement, petrochemical and paper, President Kan Trakulhoon said today.
“Sales of our cement, paper and petrochemical products have dropped dramatically this month as flooding halted production of several customers,” Kan told a press briefing in Bangkok today. “Revenue should rebound in the first half of 2012 as rehabilitation will increase demand for cement, ceramic tiles and other building materials.”
Revenue climbed 19 percent to 94.3 billion baht, the company said. Cost of sales jumped 24 percent to 81.4 billion baht and administrative expenses increased 16 percent to 4.6 billion baht, the Bangkok-based company said.
SCG Chemicals Co. Ltd., a petrochemical unit, posted a 16 percent decline in third-quarter profit to 48.8 billion baht on higher cost of raw materials, Siam Cement said in a separate statement. SCG Paper Co. Ltd., a paper unit, had a 6 percent rise in the quarter to 14.3 billion baht on higher prices of packaging paper and increased production of printing paper, it said.
SCG Cement had a 40 percent increase in net income to 1.85 billion baht on rising export prices of cement, Kan said.
Siam Cement shares gained 2 percent to close at 312 baht in Bangkok trading. The stock has dropped 8.5 percent this year, compared with a 9.1 percent decline in Thailand’s benchmark SET Index.
The company last month paid about $418 million for 30 percent of Indonesia’s PT Chandra Asri Petrochemical to gain access to the region’s most populous nation.
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