THE strong performance of the economy last year had a positive impact on the financial results of cement maker Holcim Philippines Inc., boosting its net income to P2.2 billion from P1.5 billion a year earlier.

In a report to the stock exchange, Holcim Philippines said the increase in government spending in major infrastructure projects together with higher personal consumption stepped-up the demand for cement to 10.4 percent, the highest growth rate in more than a decade.

These factors gave Holcim Philippines’ revenues an 18-percent boost from P13.7 billion to P16.2 billion in the same comparable period.

Apart from improved revenues, the company said income growth may also be attributed to lower interest expense and full receipt of insurance proceeds from insurers of the collapsed raw-meal silo in its Davao plant.

Costs and expenses, on the other hand, increased at an average of 17.5-percent principally due to higher fuel prices. However, the weakening of the US dollar favorably lessened the impact of fuel costs resulting to an earnings before depreciation, amortization, interest and taxes (EBITDA) of P5.5 billion, or P1.2 billion higher than the EBITDA in 2006.

“The economic conditions in 2007 were better than expected. The GDP growth rate was historically high at 7.3 percent, while inflation rate was only at 2.8 percent. The growth momentum was generally domestic-driven principally attributable to the mining, construction and service sectors,” said Holcim Philippines.

Holcim Philippines is a leading cement manufacturer in the country and a member of the Holcim Group, one of the world’s leading suppliers of cement, concrete and construction-related services.

Holcim Philippines was the product of a merger among HCC, Davao Union Cement Corp. and Bacnotan Cement Corp., with HCC as the surviving entity. The said merger was approved by corporate regulators in January 2000. Simultaneously, the Securities and Exchange Commission also approved the request for a change of name from HCC to Union Cement Corp.

On November 12, 2002, the company acquired approximately 88 percent of the issued and outstanding capital stock of Alsons Cement Corp. (ACC) from Cemco Holdings Inc. (Cemco) and undertook a tender offer in favor of the remaining 12-percent shareholders of ACC, other than Cemco. As a result of additional purchases in 2004, the equity interest of Holcim Philippines in ACC increased from 98.74 percent to 99.62 percent.

Holcim Philippines has a total installed clinker production capacity of 6.88 million metric tons per year (MTPY) and cement production capacity of 9.9 million MTPY. Holcim Philippines and its subsidiaries also own bulk cement terminals in Subic, Cebu, Iloilo, Bacolod, Batangas and General Santos City.

THE strong performance of the economy last year had a positive impact on the financial results of cement maker Holcim Philippines Inc., boosting its net income to P2.2 billion from P1.5 billion a year earlier.

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