EAGLE CEMENT Corp. (ECC) projects to grow its revenues by 20% for 2017, in order to hit earnings of at least P4.3 billion in the same period. 

“I think for year 2017, our revenue will grow by at least 20% up to about full year is about P15 billion. And gross profit of about more than P7 billion, and net income of maybe P4.3 [billion] to P4.5 billion,” ECC Chairman Ramon S. Ang told reporters in a briefing after the company’s annual shareholder meeting in Mandaluyong City yesterday. 

ECC has so far generated a net income of P3.29 billion for the first nine months of 2017, growing by 7% amid stiff competition and softer prices.

The listed cement manufacturer expects to sustain its growth until 2018, with the completion of its third cement line in Bulacan by 2018. This will bring its annual capacity to 7.1 million metric tons (MT), from the current level of 5.1 million MT. 

“It will continue because line 3 of (ECC) will start with production about January or February, but it’s not yet full production because usually there’s bottlenecking in the first six months,” Mr. Ang explained. 

With this, ECC targets to increase its sales by 35% in 2018, or up to 130 million bags. Mr. Ang noted this comprises a market share of around 25%.

This will allow the company to book at least P6.5 billion in earnings for next year, amid a gross profit of P10 billion, according to Mr. Ang. 

CEBU EXPANSION
Also in the pipeline for its expansion program is the construction of the company’s fourth cement line in Cebu that would expand its reach to the Visayas and Mindanao regions.

ECC has already broken ground for the P12.5-billion plant that would add another two million MT to its capacity, bringing its overall capacity to 9.1 million MT. 

“This groundbreaking brings us a step further to achieving our long term goals as a company, which is to strengthen the brand and increase market share. We hope to continue succeeding by increasing capacity to better serve our consumers nationwide,” ECC President and Chief Executive Officer John Paul L. Ang said during the shareholder meeting. 

Should other cement companies withhold their expansion plans, the completion of the Cebu plant by 2020 would make ECC the largest cement firm in terms of manufacturing capacity. 

Asked if the company has acquisition plans, the ECC chairman said: “It is very very seldom to come by an opportunity to acquire cement plant. And most of them are now controlled by the Big Three.” 

Shares in ECC lost six centavos or 0.41% to close at P14.70 each at the stock exchange on Wednesday. — Arra B. Francia

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