SCG: second-quarter earnings drop expected, outlook upbeat

Siam Cement, Thailand’s largest industrial conglomerate and leading cement producer, is expected to report a 10.5 per cent drop in second-quarter earnings, according to KGI Securities.

The decline is mainly attributed to falling regional demand for chemical products. KGI analyst Nat Panassutrakorn has revised down his full-year net profit forecast by 8.2 per cent to THB34.5bn (US$1.1bn), but is more upbeat about longer-term prospects.

"Revival in local confidence, quick disbursement from 2015 fiscal budget and prior investments such as the startup of a cement plant in Cambodia in 2Q15 and Indonesia in 3Q15 should help earnings rebound in 2015," he says.

Earlier this week TISCO Securities also said it expected Thai demand to improve, particularly from next year as the new government will help boost consumption and raise public investments.