LISTED pipes maker Crown Asia Chemicals Corp. said Thursday its net income in the first nine months of this year grew 37 percent from a year earlier on the strong performance of its pipes segment, despite lower sales from its compounds products.
The company said its net income rose to P96.8 million in January to September this year from the P70.5 million recorded in the same period last year.
It said operating revenues improved by 5.4 percent in the nine months to P842.4 million from P799.2 million in the previous year.
“The company remains on track for a banner year. The product diversification that began with the Enduro pipe line to serve the mid-cost and mass housing sectors is expected to contribute within the whole second half of the year. Our sales thrusts and product diversification is beginning to show its results with the pipe group this year,” Crown Asia chairman Walter H. Villanueva said.
“We are confident that as we continue to develop new products for both the pipes and compounds divisions, we will be able to sustain our growth trajectory well into 2017,” he added.
Sales of the pipe group jumped by 40.5 percent to P400.12 million from P284.78 million the previous year due to strong growth in both project and trade sales segments, driven by a 29.5 percent and 325.2 percent growth in sales of polyvinyl chloride (PVC) pipes and polypropylene random (PPR) or high-density polyethylene (HDPE) pipes, respectively.
PVC pipes contribute bulk or 88.78 percent of the pipe group’s sales, while 11.22 percent comes from PPR/HDPE pipes.
The compounds division, on the other hand, posted a 14 percent drop in sales to P442.3 million from P514.45 million a year ago amid pricing pressures from both export and local markets.
Moving forward, the company said the compounds division is expected to see improvements in sales as it continues to grow its sales of IC tubes and films and sheets application.
Crown Asia is a plastics compound and pipes producer owned by the Villanueva and Perez families based in Guiguinto, Bulacan. It manufactures and sells plastic chemicals and compounds, as well as synthetic resins for making construction materials such as tubes and pipes.