Siam Cement Sees Double-Digit Sales Growth In 2012
Thailand's top industrial conglomerate, Siam Cement said it expected double-digit growth in sales in 2012 to more than 400 billion baht ($13 billion) due to post-flood demand for cement and building materials.
Siam Cement, 30% owned by the Thai royal family's Crown Property Bureau, expected sales to increase almost 20% this year although the fourth quarter would be hit by the flooding, Chief Executive Kan Trakulhoon told reporters.
"It should be double-digit growth next year because of rising demand for building materials. We should get around 360 billion baht this year and it should be more than 400 billion baht next year," Kan said.
His forecasts were in line with market expectation. The firm is expected to post revenue of 368 billion baht for 2011 and 403 billion baht for 2012, according to Thomson Reuters I/B/E/S.
Flooding in central provinces, which forced the Siam Cement group to temporarily shut down operations at 12 plants, should drag sales down 20% in the fourth quarter, when net profit is expected to be lower than a year earlier, he said.
"We expect strong demand for restoration from house and business sectors next year," he said, adding most of its affected plants should resume production by the first quarter of 2012.
Two plants at Nava Nakorn industrial estate in Ayutthaya province remained closed, Kan said.
Siam Cement, valued at $13 billion, was looking to buy assets overseas as part of its expansion drive in Southeast Asia, Kan said, adding he expected to conclude an acquisition early next year. He gave no further details.
The company has said it planned to invest $4.9 billion in 2011-2015, mostly on acquisitions.
Siam Cement has said it was interested in buying a stake in Sulfindo Adiusaha, a chemical producer controlled by Indonesia's Tanojo family, which could be worth about $700 million.
In September, the company agreed to buy 30% of Indonesia's Chandra Asri Petrochemical Tbk (CAP) for $442 million.
Siam Cement focuses on three core businesses: cement, petrochemicals, and paper and packaging. Petrochemicals generally make up almost half of profits.
Kan declined comment on market talk that his company was keen to buy a stake in Home Product Center, which helped send shares in the building materials retailer to a record high this week.
At the midsession break, Siam Cement shares were down 0.3%, in line with a 0.07% fall in the main index.
