Positive free cash flow at two cement firms to drop 50% in FY04, Taiwan

Two major cement companies expect to see their positive free cash flow fall by half on a consolidated basis in the year through March 2005. 

Positive free cash flow at Taiheiyo Cement Corp is projected to plunge 45 per cent to JPY48bn partly due to JPY3.3bn in negative investment cash flow resulting from the sale of an office building in Tokyo the previous term for JPY37.2bn. The firm’s operating cash flow is forecast to decline eight per cent to JPY51.3bn. 

Sumitomo Osaka Cement Co estimates its positive free cash flow will nose-dive 54% to JPY8.2bn due to a decline in depreciation costs.  The company’s operating cash flow is projected to decrease 25% to 1JPY8.8bn, while its investment cash flow will likely post a deficit of JPY10.6bn.