EAGLE Cement Corp. reported a net income of P4.26 billion in 2017, up 4% from the previous year, amid cost efficiencies and as sales exceeded targets, the company told the stock exchange on Friday.
“We have continued to beat our operational targets in terms of volume growth and cost efficiencies. Our efforts in upgrading and debottlenecking of our existing production lines allowed us to keep healthy margins despite the challenging market environment,” said John Paul L. Ang, Eagle president and chief executive officer, in a statement.
The company attributed the higher income last year to higher sales volume, with net sales reaching P14.87 billion, higher by an annual 12%.
Excluding expenses relating to its initial public offering, net profit rose by 5% to P4.33 billion last year, it said.
Eagle is currently expanding its capacity, with its third production line in Bulacan set to start operations this year. The move is in line with the infrastructure push from both public and private sectors, it said.
Line 3 is expected to expand Eagle’s annual production capacity to 7.1 million metric tons and reach new markets, including Ilocos Region, Mimaropa (Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon and Palawan), Bicol Region in Southern Luzon, and as far as Western Visayas.
In November last year, Eagle broke ground on its fourth production line in Malabuyoc, Cebu, marking its reach nationwide. The company said the project is on track for its target completion in 2020. The new line will add another two million metric tons to annual production capacity.
Line 4 will include a manufacturing plant and a marine terminal to serve Negros, Cebu, Bohol, Masbate, Misamis Oriental, Davao, Zamboanga and South Cotabato.
On Friday, shares in Eagle were unchanged at P14.68 each. — Victor V. Saulon
