Eagle posts flat 2Q earnings

Eagle Cement Corp of the Philippines reported a one per cent rise in earnings for the second quarter of this year as wet weather affected results.

Net profit edged ahead to PHP1.9bn (US$37.5m) during the quarter versus PHP1.03bn a year ago, while net sales increased by six per cent to PHP3.71bn.

"Historically second quarter is slower because of the rainy season," Eagle Cement President and CEO, John Paul L Ang, said in a press briefing, adding that the Easter Holy Week holiday occurred in the early part of second quarter.

Net income for the first half was up 13 per cent to PHP2.2bn, which the company attributed to "higher sales volume in the midst of tight competition and an industry decline in prices."

Six-month net sales rose 12 per cent to PHP7.5bn due to higher volumes of both bagged and bulk cement, although most of the growth occurred in the first three months of the year.

Eagle Cement CFO, Monica L Ang, said the company experienced price pressures during the January to June period, with average selling price dropping by high single digits due to stiff competition in the market, Business World (Philippines) reported.

She added that the company expects domestic cement demand to have increased in the first half of the year “by at least 5-6 per cent,” citing data taken after monitoring Customs and port terminals accepting cement products.