May 2008 Financial News

TCL Releases First Quarter Results

May 13, 2008

Trinidad Cement Limited
Results for the First Quarter Ended March 31, 2008

Earnings Per Share
Trinidad Cement Limited (TCL) reported Earnings Per Share (EPS) of 19 cents for the First Quarter Ended March 31, 2008. This represented a decline of 5.0 per cent or 1 cent on the comparable period of fiscal 2007. According to the Directors, while TCL, Readymix (West Indies) Limited and Caribbean Cement Company Limited (CCCL) continued to perform well, improving on their 2007 performance, Arawak Cement Company Limited (ACCL) did not deliver its full benefit to the Group. This was as a result of challenges associated with the new fuel system which the Group expects to be resolved by mid-2008.

Financial Highlights:
• Revenue, up 8.7 per cent or $41.8 million to $521.5 million
• Operating Profit, down 5.9 per cent or $5.5 million to $87.7 million
• Net Finance Costs, down 16.8 per cent or $4.3 million to $21.2 million
• Profit After Taxation, down 7.4 per cent or $4.1 million to $51.9 million

Recommendation
With the commissioning of the new kiln at CCCL in the second quarter of 2008, the new fuel system at ACCL and an expected stable demand in both the Caribbean domestic and export markets, TCL is in a position to deliver good results for fiscal 2008.

TCL last closed at a price of $10.25 on the local market. We have forecasted an EPS of $0.95 for fiscal 2008 which at the current price translates to a price to earnings multiple of 10.8 times. At this time we recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team