Nov 2009 Financial News

TCL hopes to bounce back after losses

Nov 03, 2009

Regional aggregate company, Trinidad Cement Limited (TCL) Group has reported a decrease in revenue and profit for the first nine months of 2009, despite an increase in earnings for the same period.

The group, however, expects new markets to increase sale opportunities and maintains that it is well positioned to bounce back when demand increases.

For the nine months to September 2009, revenue stood at approximately $1.3 billion – $247 million, or 15 percent less than revenue for the same period in 2008 which was reported to be around $1.6 billion. Revenues for the three months between July and September 2009 was $439 million compared to $533 million earned for the same period in 2008. Profit after taxation went down to $79 million for the first nine months of the year from $129 million recorded for the same period last year. Statements for July to September show that profit after taxation was $12.9 million, down from $26.2 million in 2008. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA), however, increased marginally to $317 million for the first nine months of 2009 from $315 million in the same period 2008. An increase in EBITDA was also recorded between July and September 2009, moving up from $79 million in 2008 to $81million. The group was also able to generate cash from operations of $351.2 million, which was an increase of $20.9 million over the same period in 2008.

In the group’s outlook, contained in TCL’s consolidated interim financial report published yesterday in daily newspapers, Group CEO/Director, Dr Rollin Bertrand said TCL continues to pursue cost cutting measures and new sales opportunities. “We have secured sales orders for cement shipments into new markets of Haiti, Belize and Brazil which is a very exciting prospect in light of construction there for the upcoming FIFA World Cup and Olympics,” he stated.

Bertrand explained the group’s performance was mainly due to results at the Jamaican subsidiary, Caribbean Cement Company Limited. The company’s newest kiln - Kiln 5 - in Jamaica has been the source of an increase in interest and depreciation which affected the improvement of the company’s EBITDA. In addition foreign exchange losses of $22.1 million were incurred, mostly in Jamaica where the Jamaican dollar has depreciated 10.7 percent against the United States dollar. Tax credits for the quarter and nine months ending September 2009 are due to the losses reported by CCCL and tax expenses claimed in relation to the new kiln at that subsidiary. CCCL reported a net consolidated loss of J$291 million and $75 million for the first nine months of the year.

Bertrand also pointed out continuing weakness in demand in TCL’s main markets which is further challenged by moves to waive the Common External Tariff(CET) applicable to Caricom countries.


Source:
Trinidad Newsday
Tuesday, November 3 2009

http://www.newsday.co.tt/business/0,110310.html