Siam City Cement Plc (SCCC) reported a 14.6% YoY increase of net profit yesterday, up to THB1.28bn (US$41.3m) for the first quarter on the back of strong domestic cement consumption.

Thailand's second-largest cement manufacturer saw net sales rise 12.4% from the year before to THB6.99bn, it said in a statement.

"Cement consumption increased in the first quarter, driven by sizeable growth from both public and private construction," it said. "However, cement pricing did not reflect rising energy and transportation costs, negatively impacting the operating margin of the cement business."

Earnings per share for the quarter amounted to THB5.56, up from THB4.85 for the same period in 2011.
SCCC expects domestic cement consumption to grow by 5% this year from 28Mt last year.

"The construction industry should see solid growth driven by investments in infrastructure and flood rehabilitation and prevention works," it noted.

SCCC's shareholders on 23 April approved an annual dividend of THB13 per share, based on reported earnings of THB14.32 per share for 2011 performance, representing a payout ratio of 91%.