Dec 2007 Financial News

TCL Nine Month Update

Dec 13, 2007

Trinidad Cement Limited
(Nine Months Ended September 30, 2007)

For the Nine Months Ended September 30, 2007, Trinidad Cement Limited (TCL) reported Earnings Per Share (EPS) of 52 cents. This represented an increase of 36.84 per cent or 14 cents on the comparable Nine Month period in FY06. However, Q307 on Q306, the Group’s EPS was down 16.67 per cent or 3 cents from 18 cents (Q306) to 15 cents (Q307). According to the Directors, this resulted mainly from the continued negative impact of increased fuel costs at the cement plant in Barbados, Arawak Cement Company Limited.

TCL last closed at a price of $7.38 on the local exchange. We have revised our forecasted EPS downwards to $0.75 for FY07. At the current price and revised forecasted EPS, this share is trading at a price to earnings multiple of 9.84 times. Additionally using a multiple of 11 times and the forecasted EPS of $0.75, this share has an expected return of approximately 12 per cent on the current price or a target price of $8.25. Thus, we continue to recommend a BUY on this share.

Nancy Chen
Research Analyst