MANILA – Building solutions provider Holcim Philippines has posted a 57.6-percent decline in profit in the first three quarters of the year on lower volumes and prices.
Holcim told the local bourse its net income reached P2.3 billion in January to September from P5.42 billion during the same period last year.
The company’s profit in the third quarter alone reached P337.2 million compared with P1.8 billion in the previous year on cost pressures from rising energy expenses and the declining peso.
Holcim said tighter competition and higher production expenses challenged its performance in the third quarter, but the company continues to sustain its investment and expansion plans in the country.
“We remain steadfast in our support for Philippine growth and in the many opportunities in the market. We note the government’s recent report that infrastructure spending has started to pick up,” said Holcim Philippines President and Chief Executive Officer Sapna Sood.
“To this end, the transformation of our company continues in order to better serve our customers and support the development of the country,” said Sood.
Holcim said it continues to ramp up its support for Mindanao with its P2.7-billion expansion project in Davao and the groundbreaking of its upgraded facilities this month in rites to be attended by key government and top company officials.
This will bring its cement production capacity in the city to 2.2 million metric tons, as part of raising its total cement capacity by 2019 to 12 million metric tons from the current 10 million metric tons.
The company is also continually pursuing and co-developing solutions and technical services, together with its clients and partners, that result in effective time and cost efficiencies, a key focus of the government’s infrastructure program.
Given the business conditions, it is further strengthening its cost management efforts through logistics excellence, renegotiation of energy and procurement contracts to improve variable costs, and fixed cost management.