Petaling Jaya, 19 May 2006
For the first quarter of 2006, Lafarge Malayan Cement Berhad (LMCB) recorded a profit before tax of RM18.9 million on the back of a RM476.1 million revenue. The leading cement manufacturer recovered strongly from a loss of RM21.5 million in the corresponding quarter last year with a 13.8% growth in revenue from RM418.1 million.
President and Chief Executive Officer, Alain Crouÿ said "Our first quarter performance this year is evidence that things are definitely looking on the brighter side for Lafarge Malayan Cement and for the industry. Market and price stability are likely to be sustainable going forward", added Crouÿ.
In addition to better selling prices, LMCB is expecting local demand for cement to rise in 2006 in tandem with the increase in construction activities, particularly via the Government's focus on the implementation of the 9th Malaysia Plan.
LMCB is also looking to increasing its export volume with a higher output in 2006. Export prices have increased since last year due to the tightening of supply on the international cement market.
While cost management will remain a key concern for local cement industry players, for example with the possible prospect of an increase of the price of power, the leading producer is continuing to emphasize the improvement of its plants and logistic operations efficiency. The relocation of its Langkawi cement mill to Rawang in July last year is an example of the steps taken in that direction.
"Whilst 2005 was a difficult year, we continued to focus on improving our own operational performance and mobilizing our people to achieve the vision we have set for ourselves as the leader of the cement industry. To this end, we have emerged a stronger company to compete more effectively on the market," said Crouÿ.
"Looking forward, we are optimistic with the more favourable outlook for 2006, and are confident that we will bring in better results for our stakeholders," he added.
About Lafarge Malayan Cement Berhad
Lafarge Malayan Cement Berhad (LMCB) is the leader of the Malaysian cement industry and a major player in the Asian export market. It was incorporated in 1950 with its first cement plant built in Malaysia in 1953.
LMCB is today the parent of a group of companies in Malaysia and Singapore whose core businesses are in the manufacturing and sale of cement, ready-mixed concrete and other related building materials.
LMCB currently employs 2000 people and operates a nationwide network of facilities, which include 3 integrated cement plants in Langkawi, Kanthan and Rawang, one grinding plant in Pasir Gudang and distribution channels by road, rail and sea.
Additional information is available on the website at www.lafarge-mcement.com.my.