Carib Cement impressive profit

caribcementlogo280x150Caribbean Cement posted impressive first quarter results for 2015, with profit after tax rising sharply to $248 million versus just $35 million the year before, from revenues of $3.58 billion. Revenues were just slightly less than the $3.6 billion generated in 2014.
Domestic sales volumes fell 3 percent, while exports declined sharply from 61,000 tonnes to 40,000, however, an increase in clinker sales from 44,261 tonnes to 55,371 mitigated the decline in cement sales somewhat. Lower energy costs, improvements in operational efficiencies, effective control of fixed costs and lower financing costs, were the major factors helping in the improved profit out turn. These results suggest that full year earnings could rise to $1 per share for 2015 and may well exceed it, if energy cost remained contained at current levels.
During the quarter interest cost remained fairly static with $65.5 million incurred, compared with $66 million in 2014 but depreciation charge climbed from $84 million to $93 million.
At the end of the period, cash increased from $178 million to $543 million. As impressive as the results are, the company has an operating deficit of $7 billion that will take years to wipe out, even at the level of profits now being generated. There are capital gains on the books of $1.4 billion, that can be used to offset the operating deficit, thus reducing the overall amount, nevertheless, the resumption of paying dividends is years away.
The stock which was elevated to BUY RATED in 2013 continues to hold that status and traded at $3 on the Jamaica Stock exchanged on Tuesday in response to the results.

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  1. […] the offer at $1.40. Caribbean Cement lost 1 cent to end at $18, with 159,792 shares changing hands. Cement closed with only two offers to sell 140,000 units at $24, with bids are 100,000 at $17.75, at […]

  2. […] Caribbean Cement sold 22 percent more cement on the local market I this years’ third quarter than they did in 2014 September quarter. “Domestic sales volume for the third quarter exceeded the corresponding period in 2014 by 22 percent and for the nine month period, was 9 percent above the volumes in 2014” Christopher Dehring, Chairman and Jose Luis Seijo Gonzalez, group CEO stated in a joint statement issued along with the September quarterly report. For the nine months to September 2015, the company ended with a profit after tax of $1.486 billion. In 2014 a profit of only $25 million was realised for the nine months last year. The 2015 results translate to earnings per share of $1.75 at September. For the quarter to September, profit after tax amounted to 72 cents per share or $617 million compared with just $78 million in the 2014 quarter. If the sales trend continues, earnings per share should hit $2.50 for 2015 which includes an exceptional income of $168 million or about 15 cents per share. The company’s stock traded at $15 on Friday and now carries a PE of 6.5 times this year earnings, and seems set to move up in price with these results with the valuation of the most valued stocks on the market being at 10. Gross cash generated by operating activities amounted to $2 billion and after repaying loans ended at $997 million in cash funds. Revenue for the third quarter grew by $741 million or 21 percent over the same period in 2014 mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement export sales volumes. The company benefited from lower costs of fuels and energy and Interest expense that decreased by 73 percent for the quarter to only $16 million, from $59 million in 2014. For the nine months interest expenses ended at $120 million from $196 million as a result of the company’s financial restructuring initiative resulting in some prepayments of long-term debt in excess of $800 million. Depreciation and amortisation cost, however, rose from $83 million in the September 2014 quarter to $102 million in 2015 and to $296 million for the nine months from $251 million in 2014. The vastly improved results have changed the financial structure with net working capital jumping from just $360 million surplus to $2 million at September and equity rising to $6.4 billion from $4.8 at the end of September 2014. […]

  3. […] and Wireless closed with a gain of 6 cents as 2,942,811 shares changed hands to end at 61 cents, Caribbean Cement gained $1.79 to end at $13.80 for a new 52 weeks’ closing high, with 28,042 shares changing hands. […]

  4. […] three offers amounting to 40,000 shares between $1.20 and $1.70 and at 2.66 million units at $3.75. Caribbean Cement gained 82 cents to end at $15 for a new 52 weeks’ closing high, with 68,800 shares changing hands. […]

  5. […] with a gain of 5 cents as 368,000 shares changed hands to end at 52 weeks’ high of 67 cents, Caribbean Cement gained 38 cents to end at $14.18 for a new 52 weeks’ closing high, with 137,325 shares changing […]

  6. […] changed hands to be at 51 cents, the stock ended with the bid at 57 cents to buy 204,500 shares. Caribbean Cement closed at $12 with 28,000 shares changing hands, Carreras traded 316,500 shares to close at $52.05 […]

  7. […] and Wireless closed with a gain of 4 cents as 276,100 shares changed hands to end at 55 cents, Caribbean Cement gained 1 cent to end at $12.01 for a new 52 weeks’ closing high, with 12,669 shares changing […]

  8. […] shares changing hands to close at 52 cents, but the price traded up to 60 cents during the day. Caribbean Cement shot up to $10 with 35,038 shares changing hands for a 10 cents increase, Carreras traded 54,715 […]

  9. […] trading, Cable and Wireless added 5 cents, with 845,177 shares changing hands to close at 58 cents, Caribbean Cement shot up to $9 with 281,375 shares changing hands at 50 cents higher, Desnoes and Geddes jumped […]

  10. […] at $2.29, Cable and Wireless added 2 cents with 808,014 shares changing hands to close at 53 cents, Caribbean Cement traded 25,840 shares to close 1 cent higher at $8.01. Desnoes & Geddes traded 42,650 shares at […]

  11. […] to be at 100,116.27 and the junior market is up 14.64 points to 983.50. The main trades so far are Caribbean Cement with 150,477 at $8, Kingston Wharves with 82,672 units at $6.50 and Scotia Investments 55,000 units […]

  12. […] In trading, Cable and Wireless fell 2 cents with 6,000 shares changing hands, to close at 49 cents, Caribbean Cement had 215,450 shares trading with a 1 cent rise to $7.71, Carreras lost 40 cent in trading 11,250 […]

  13. […] At the close the stock had 1,122,637 units on the bid at 48 cents and 300,000 on offer at 52 cents. Caribbean Cement traded 200,000 shares at $8 while gaining 30 cents, Desnoes & Geddes ended with 128,250 shares […]

  14. […] hands, to close at 50 cents. At the close the stock had 2,003,038 units on the bid at 48 cents, Caribbean Cement traded 11,529 shares at $7.70, down by 10 cents, Desnoes & Geddes ended with 31,250 shares […]

  15. […] hands, to close at 48 cents. At the close the stock had 2,167,369 units on the bid at 48 cents. Caribbean Cement traded 35,389 shares at $7.80 to gain 10 cents, National Commercial Bank with 29,091 units changing […]

  16. […] million units. On offer between 48 and 55 cents, are 11 visible offers to sell 3.3 million shares. Caribbean Cement had 797,607 shares changing hands for a loss of 10 cents to $7.90, Carreras closed at $50.30 as the […]

  17. […] were lower. In trading, Cable and Wireless fell 1 cent with 110,387 units and closed at 42 cents, Caribbean Cement had 54,911 units changing hands at $8, Carreras closed with 1,149,666 shares trading 50 cents lower […]

  18. […] with offers that were lower. In trading, Cable and Wireless with 279,208 units closed at 40 cents, Caribbean Cement had 27,500 units changing hands at $8, Gleaner closed with 116,172 shares and lost 2 cents to $1.90. […]

  19. […] were lower. In trading, Cable and Wireless had 214,092 shares changing hands to end at 40 cents, Caribbean Cement had 112,969 units changing hands at $8.01, Desnoes & Geddes traded 212,380 shares at $7 for a […]

  20. […] Cable and Wireless had 306,499 shares changing hands with a loss of 3 cents, to end at 40 cents, Caribbean Cement had 19,000 units changing hands at $8, Gleaner closed with 23,326 shares and fell 17 cents to $2. […]

  21. […] Cable and Wireless with 154,750 shares changing hands with a loss of 1 cent to end at 43 cents, Caribbean Cement had 50,227 units changing hands with a gain of 50 cents at $8, Carreras traded at $50 with 8,706 […]

  22. […] were lower. In trading, Cable and Wireless ended with 990,000 units changing hands at 40 cents, Caribbean Cement stock fell $1.35 to close at $7.15 but traded as high as $8.60 with 669,805 units traded, Carreras […]

  23. […] lower. In trading, Cable and Wireless ended with 286,500 units changing hands to end at 39 cents, Caribbean Cement stock gained 74 cents to close at $7.99, Carreras traded 11,949 units to close at $52 after trading […]

  24. […] trading, Cable and Wireless ended with 3,100,287 units changing hands and lost 3 cents to 39 cents, Caribbean Cement traded 10,250 shares to close at $7.10 after shedding 35 cents, Carreras gained $1 with 6,385 units […]

  25. […] units changing hands at 46 cents but closed with an offer to sell 500,000 units at 45 cents, Caribbean Cement had 96,288 units trading at $5.60 after adding 10 cents,Gleaner traded at a new 52 weeks’ high of […]

  26. […] to business sales in the revenue figure which helped to push improvement up by 29 percent. Caribbean Cement had 131,225 units trading at $6 after adding 50 cents, Carreras gained 70 cents in trading just […]

  27. […] with bids higher than their last selling prices and 5 with offers that were lower. In trading, Caribbean Cement closed with 48,780 shares changing hands at $5.45 after slipping 5 cents, Carreras put on 2 cents […]

  28. […] with bids higher than their last selling prices and 8 with offers that were lower. In trading, Caribbean Cement closed with 38,245 shares changing hands at $5.50, Carreras traded 12,000 shares but closed with a […]

  29. […] units changing hands I cent higher at the close at 45 cents but traded as high as high as 48 cents. Caribbean Cement ended with 173,958 units trading, but lost 35 cents to end at $5.50, Desnoes & Geddes traded […]

  30. […] index that gained 549.01 points to 100,502.06, the junior market index lost 1.74 points to 909.39. Caribbean Cement traded 1,007,125 shares is the big trade but the price fell 38 cents to $5.02, Access Financial lost […]

  31. […] and the JSE combined index gained 659.28 points to end at 99,953.05. Stocks trading include, Caribbean Cement adding 800,705 shares to gain 40 cent to close at $5.40 for a new closing 52 weeks’ high, Desnoes […]

  32. […] Helping the indices move up are National Commercial Bank trading at $29.99 for a 53 cents gain, Caribbean Cement adding 10 cent to $5.10 and Sagicor Real Estate Fund trading a $8. The prices of 9 stocks have […]

  33. […] that were lower. Stocks trading include, Cable & Wireless traded 830,959 units at 44 cents, Caribbean Cement ended with 42,304 shares changing hands at $4.99 after gaining 14 cents. Carreras closed with 47,127 […]

  34. […] to shed cents from the stock price as it traded 105,232 shares, to end at 43 cents 2 cents down. Caribbean Cement had just 10,000 shares trading, but it lost 20 cents to close at $4.80, Carreras had just 3,200 […]

  35. […] trading on Thursday there was heavy trading in a number of stocks. The big trades for the day are Caribbean Cement with 4,504,011 shares to close at $4.80, the vast majority traded at $5. Carreras traded 528,878 […]

  36. […] declining stocks out numbering advancing ones. In trading, Berger Paints traded 71,289 units at $3, Caribbean Cement had 201,560 units trading at $5 after dropping 10 cents. Interestingly, even as Cable & […]

  37. […] $9 billion loss including an exceptional charge of $7 billion, after trading closed on Monday. Caribbean Cement had 70,900 shares trading at $5.10, to record a gain of 10 cents. Carreras traded of $51.50 and lost […]

  38. […] ended with 1,940,000 units trading between 47 cents and the last price of 50 cents to gain 3 cents, Caribbean Cement closed with 5,400 shares at $4.01, down 34 cents, Desnoes & Geddes finished trading with 69,899 […]

  39. […] bid at $2.55 to buy 123,873 shares. Cable & Wireless had 306,000 shares trading at 47 cents, Caribbean Cement traded 292,100 units to close at $5, Carreras traded 211,982 shares to close at $49, Gleaner posted […]

  40. […] The most significant price change is Scotia Group with a price of $25.90 up from $25.16 on Friday. Caribbean Cement traded 227,030 at $5 compared with a close of $4.21 on Friday. Sagicor Group traded 727,037 units […]

  41. […] In trading, Barita Investments ended with 100,000 shares changing hands, 1 cent higher, at $2.31. Caribbean Cement closed with 66,000 units trading at $4.99 with a 1 cent slippage, Desnoes & Geddes finished […]

  42. […] with bids higher than their last selling prices and 2 with offers that were lower. In trading, Caribbean Cement ended with 50,000 units to close higher by 80 cents to end at $5, a new 52 weeks’ high, […]

  43. […] units trading, valued at $$29,091,872, in all market segments. There were 4 dominant trades, with Caribbean Cement accounting for $14,785,112 of the total value of trades, Grace Kennedy $13,881,820, National […]

  44. […] Caribbean Cement is now listed as trading at $5 which would be the highest for more than a year, but the trade pushing the price to that level has, resulted in the stock being frozen from trading for an hour. The stock can trade up to another 15 percent higher from the $4.60 or a maximum of $5.29 for the day. Mayberry Investments crossed 300,000 units at $4.08 shares which were sold from in house inventory to a client similarly another 1,000,000 units at $4.18 and 2,000,000 units at $4.20 was similarly traded by them fro in house inventory. Mayberry Investments also traded 177,448 shares at $4.80 and 7,000 at $5 both these trades exceeded the permitted price change of 15 percent which led to the stock be frozen unit 11.48am. the stock has been responding to a big jump in profit for the first quarter, suggesting earnings should exceed $1 per shares. […]

  45. […] there have been a few sizable trades so far. The larger trades in the first hour of trading are, Caribbean Cement with 300,000 changing hands at $4.08, Grace Kennedy 215,470 shares at $64, National Commercial Bank […]

  46. […] This out turn indicates another strong day ahead for price movements. The main stocks trading| Caribbean Cement traded only 100 shares, gained 55 cents to end at $3.85, but closed with the bid at $3.88, Carreras […]

  47. […] than their last selling prices and 2 with offers that were lower. Wednesday session closed with, Caribbean Cement gained 30 cents in trading 91,665 units at $3.30, Carreras having 4,200 units changing hands to end […]