PIPES maker Crown Asia Chemicals Corp. said its income grew by 61 percent during the first half of the year to P66.4 million from last year’s P41.3 million.
The robust sales of its products came about as infrastructure construction continues.
Consolidated revenues increased by 12 percent to P562.8 million, from P499.3 million for the period. Revenues for the second quarter alone grew by 9 percent to P285.5 million, from P262.4 million a year ago. Its Pipe group’s sales rose 48 percent to P270.2 million, from P182.5 million the previous year, due to strong growth in both project and trade-sales segments.
Project sales increased by half to P167.3 million from P111.2 million the previous year. It comprised 62 percent of the Pipe group’s sales.
Trade sales grew 44 percent to P102.9 million, from P71.3 million in the same period last year. It accounted for 38 percent of the Pipe group’s sales.
The Compounds division sales, however, fell 7 percent to P24.1 million as a result of the pricing pressures from both export and local markets.
“This was a result of the Compounds division approach to maintain its relationship with its loyal customers. The net result was stable volume sales. Moving forward, the Compounds division is expected to see renewed improvements in its sales owing to the growing sales of bottles, IC tubes packaging, films and sheets applications,” it said.
The Pipe’s group profit grew by 95 percent to P37.1 million, from P18.9 million, accounting for 56 percent of Crown’s earnings.
The Compounds division net earnings increased by 31 percent to P29.3 million, from P22.3 million the previous year, accounting for 44 percent of consolidated earnings for the period.
“The company is on track for a banner year. Its push in project sales is delivering results. The product diversification that began with the Enduro pipe line is expected to contribute in the second half of the year. Other product diversification in the pipeline is geared toward serving more untapped market segments, such as the mid-cost and mass-housing markets in the years to come,” said Walter Villanueva, the company’s chairman.