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Siam Cement sees profit drop in Q2

Siam Cement sees profit drop in Q2

SIAM Cement Group, which owns 90 percent of Kampot Cement, has announced a 21 percent drop in profits for the second quarter to 1.553 billion baht (US$45.6 million) in its cement division.

In a statement Wednesday announcing financial results up to the end of June, the publicly traded company said net sales fell 11 percent in the second quarter to 11 billion baht "due to lower cement prices and sales volume".

However, first-half net profit was still up 10 percent year on year in the division due to "various energy savings programs", the statement added.
Siam Cement Group's overall results were more healthy - consolidated net profit increased 32 percent in the second quarter compared to the first to 6,837 billion baht, decreasing 5 percent year on year.

As the major shareholder in Kampot Cement - which has a domestic market share of about 50 percent - Siam Cement has a strong presence in the Cambodian cement market, which has seen declining sales on the back of the downturn in the construction sector.

Kampot Cement said this month that sales had fallen about one-third in the first five months of the year. The company added that it was unlikely to meet its 2009 sales target of 3 million tonnes.

The $127 million joint venture was established in January 2008, with Cambodia's Khaou Chuly Group holding the remaining 10 percent stake.

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