CROWN ASIA Chemicals Corp. grew its earnings by 5% in the first half of 2017, on the back of double-digit increase in revenues due to strong demand for pipes amid the country’s infrastructure program.
The listed manufacturer of polyvinyl chloride (PVC) compounds and Crown pipes earned P69.7 million for the six-month period, against the P66.4 million in the first half of 2016.
Sales of its compound division jumped 24.39% higher to P363.96 million, boosted by the demand from local wire and cable companies. Exports of PVC compounds also went up 19%.
With a 3% increase in revenues for the pipe group, Crown Asia said it expects the segment to “reach upward trajectory” as the government ramps up its infrastructure program in the coming months. Crown General Manager of the Pipe Division Derrick P. Villanueva said the company expects to sustain the revenue growth amid the delay of some projects given the government’s shift in funding mode.
“We are confident that the administration will also prevail upon foreign governments to extend preferred attention to offered infrastructure projects under the ‘Build, Build, Build program,’” Mr. Villanueva was quoted as saying in a statement.
Last June, Crown Asia said it will be providing Crown pipes for the construction of the P26.66-billion Metro Manila Skyway Stage 3 project.
In addition to its portfolio of premium products, the company said it will be launching uPVC roofing materials that will have built-in ultraviolet protection feature. Incorporated in 1989, Crown Asia produces plastic compounds, plastic pipes, and other related products such as PVC pellets used for the construction and telecommunications industries. Its plant in Guiguinto, Bulacan has an operating capacity of 15,000 metric tons (MT) annually for compounds, and 8,500 MT for pipes. — Arra B. Francia
