Nov 2013 Financial News

Carib Cement continues turnaround

Nov 11, 2013

CARIBBEAN Cement Company (Carib) continued on a profitable path in the September 2013 quarter, according to financials released by the firm last week.
Carib posted a net profit of $168.9 million for the third quarter ending September 30, 2013 compared to a $245 million loss over the same three months last year. The positive result was boosted by increased cement sales volumes in both local and export markets — up 18 per cent and 60 per cent respectively over year earlier levels — contributing to a 52 per cent jump in total revenue to $3.2 billion.

Importantly, bolstered by increasing exports, the company earned its third-quarter revenue from the sale of 230,954 tonnes of cement, which is around the levels the company was at before the cement crisis was triggered in 2006. But while the domestic market remains sluggish, with the negative impact of devaluation of the Jamaican dollar a primary concern, the company is confident that it will continue on the positive path.

"While we do not foresee any meaningful growth in the domestic market, with careful cost management and sustained export earnings, we expect to maintain favourable results over the rest of this year," Carib said in the directors' statement accompanying the financial report.

The cement manufacturer's main export markets include Haiti, Guyana, Belize, St Kitts, Aruba, Dominican Republic, Cayman, Colombia, St Croix, Cuba and Suriname. It landed a deal in August to supply Venezuela with 200,000 tonnes of clinker over a one-year period.

The deal represents the second windfall for the local company, which recently secured an effective debt write-off of some US$38 million from its parent Trinidad Cement Limited (TCL), allowing it to post its first profit in years.

TCL meanwhile reported that EBITDA (earnings before interest, taxes, depreciation, and amortisation) was marginally down at TT$85.4 million for the period under review, compared with TT$87.5 million for the prior year quarter.

"Whilst Group Revenue for the quarter increased by TT$69.7 million (or 16 per cent) to TT$496 million, unplanned stoppages due to technical problems at the Trinidad and Barbados plants hampered production and efficiency with the consequence of higher unit costs," the company said, noting, however, that the technical issues at the Trinidad plant have been resolved.


Source:
Jamaica Observer
Sunday November 10, 2013

http://www.jamaicaobserver.com/business/Carib-Cement-continues-turnaround_15414556#ixzz2kT214Ydl