LISTED Crown Asia Chemicals Corp., maker of premium pipes and polyvinyl chloride (PVC) compounds, said on Tuesday that its net income in the first half of the year surged 60 percent from a year ago on stronger pipe segment sales.
In a disclosure to the Philippine Stock Exchange, the company said its net income for the first six months reached P66.4 million, 60.8 percent higher than the P41.3 million realized during the same period a year ago.
Consolidated revenues in the period rose by a slower pace of 12.7 percent to P562.8 million from P499.3 million a year ago.
For the second quarter, the chemical company posted a net income of P34.1 million, up 42 percent from last year, while revenue improved by 8.8 percent to P285.5 million.
“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, Crown Asia chairman.
Crown attributed its revenue and profit growth to the pipe group’s sales increase of 48 percent to P270.2 million on the back of the stronger project and trade segments.
Project sales grew 50 percent from a year ago to P167.3 million and comprised 62 percent of the pipe group’s sales.
Trade sales grew 44 percent to P102.9 million and accounted for 8 percent of the pipe group’s sales.
However, sales by the compounds division eased by 7.62 percent to P24.1 million as a result of pricing pressures from both the export and local markets.
“Moving forward, the compounds division is expected to see renewed improvement in sales owing to the growing sales of bottles, IC tubes packaging, films and sheets applications,” Crown said.
For the first six months of the year, the pipe group’s net profit climbed 95 percent from a year ago to P37.1 million and accounted for 56 percent of Crown’s earnings.