Business

Lockdowns pull down Eagle Cement Q2 profit

Eagle Cement Corp. of the family of bilyonaryo Ramon S. Ang saw its second quarter earnings plunge to P128 million from P1.7 billion in the same period last year as sales had been severely impacted by lockdown restrictions.

Net sales declined 73% to P1.4 billion as lockdowns disrupted construction activities, affecting cement demand.

In the six months to June, the company reported a net income of P1.3 billion, 61% lower than the previous year as sales fell 44% to P5.9 billion.

AGLE reported a second-quarter net profit of P128 million, down from P1.7 billion over the same period in the previous year, as net sales dropped 73% to P1.4 billion.

“These are very difficult times but we remain confident that the economy will recover from this pandemic and emerge stronger. The government’s steady push for the completion of major infrastructure projects and the private sector’s readiness to bounce back offer encouraging signs for our company’s prospects moving forward,” said EAGLE president and CEO Paul Ang.

He said the company would undertake more aggressive strategies in pricing and marketing to thrive in this challenging environment.

Despite lower profits in the first half, Eagle’s financial position remains solid. Total assets stood at P45.8 billion as against liabilities of P10.2 billion.

“Our balance sheet remains strongand well-capitalized and the company is well-positioned to take advantage of a rebound in the construction industry. We continue to expand our production capacity despite the pandemic, underscoring our confidence on the economy’s ability to recover once quarantine restrictions are further eased,” said Ang

The company Bulacan expansion, which will boost capacity by 1.5 million metric tons to 8.6 MMT, is targeted for completion in the first quarter of 2021.

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