EARNINGS of Eagle Cement Corp. (ECC) rose by six percent in the second quarter of 2018, driven by the strong sales of its cement products.
In a presentation to analysts disclosed to the stock exchange on Tuesday, ECC said net income reached P1.256 billion in the April to June period, higher than the P1.189 billion it posted in the same period a year ago. Net sales exhibited a 14% increase to P4.208 billion for the three-month period.
The listed cement manufacturer’s gross profit margins slipped to 49% during the quarter, versus the 51% seen in the same period a year ago, while net income margins slightly dropped to 30%, from 32% in the second quarter of 2017.
On a six-month basis, ECC’s net income rose five percent to P2.322 billion, while net sales jumped 10% to P8.211 billion.
Meanwhile, gross profit margins for the first semester was unchanged from the previous year’s 48%. Net income margins went down to 28% from 30% in the same quarter a year ago.
“Upgrading and debottlenecking efforts in existing lines allow us to keep healthy margins. Additional capacity will help support increasing demand and growth trajectory,” the company said.
ECC is currently expanding its capacity through a third production line in its Bulacan facility, which will add two million metric tons annually. The third line is due for completion within the third quarter.
The company is also constructing a fourth production line in Malabuyoc, Cebu, as it targets to expand its market to the Visayas and Mindanao regions. The line will have a capacity of two million metric tons, and is scheduled to be completed by 2020.
The expansion program will bring ECC’s total capacity to 9.1 million metric tons every year.
Shares in ECC lost two centavos or 0.13% to close at P15.88 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia
