CONSTRUCTION solutions provider Holcim Philippines said on Thursday its net income for the first three months of 2017 dropped 37.4 percent to P939.4 million from the first quarter of 2016 due to tighter industry competition, lower public infrastructure spending and higher production expenses.
The comparative year-earlier net income was P1.5 billion.
In a disclosure to the Philippine Stock Exchange (PSE), Holcim said net sales in the first quarter fell 12 percent to P8.8 billion “due to the challenging business environment.”
It said operating earnings before interest, tax, depreciation and amortization (Ebitda) fell to P1.7 billion in the first quarter from P2.5 billion in the same period last year due to higher costs from rising fuel prices and a weaker peso.
“Holcim Philippines estimates that cement demand in the country slightly declined from that of the same period last year, when pre-election spending on infrastructure was accelerated. However, the company is positive about the outlook for the rest of the year,” it said.
“Infrastructure and innovation are cited as pillars for the country’s 2017 productivity growth forecast at 6.4 percent Gross Domestic Product (GDP). These pillars are strengths of Holcim Philippines that we believe will buoy the company and make a big difference for customers. This region has been showing strong growth, giving us the optimism to continue to transform and serve our customers even better,” Holcim Philippines chief operating officer Sapna Sood said.
Holcim Philippines is the local arm of LafargeHolcim Group, producing and supplying cement and aggregates (crushed stone, gravel and sand). It has four factories in the Philippines located in La Union, Bulacan, Misamis Oriental and Davao.