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Financial News

Jun 2012 Financial News

Carib Cement hikes prices

Jun 01, 2012

JAMAICANS will pay over nine per cent more for cement, as the nation's sole manufacturer of the commodity moves to offset rising costs.

Caribbean Cement Company yesterday announced a 9.2 per cent price increase of its main product, effective today, saying that a confluence of factors has impacted negatively on its mining, manufacturing and distribution costs.

"In the first four months of this year, oil prices have continued to rise and are up 12 per cent over the end-of-the-year prices. This has translated into a nine per cent increase in electricity costs and we are likely to face similar increase in our solid fuel costs when next we order," stated Carib Cement in an advisory to the Jamaica Stock Exchange.

What's worse is that, against this background, the domestic market for cement appears to be shrinking, while the company continues to struggle financially, Carib Cement added.

"We have critically reviewed all strategies that affect the company's performance and are left with no choice," the compamy said, noting that "Our situation is not very different to other manufacturers in the region who have also been adjusting their prices in the face of escalating energy and other costs."

In a consolidated unaudited financial report for the quarter ended in March, Carib Cement said it had a loss of $625 million for the first quarter of 2012, compared with a $374-million loss before tax credits for the same period last year.


Source:
Jamaica Observer
Friday June 1, 2012

http://www.jamaicaobserver.com/business/Carib-Cement-hikes-prices_11569312#ixzz1wqvAJHvG