Christopher Dehring

22% percent increased cement sales in Q3

October 25, 2015 by IC Insider.com

Carib Cement closed at a new 52 weeks’ high of $12

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.

Filed Under: Company News, Company Results Tagged With: Caribbean Cement, Christopher Dehring, Jamaican Stock, Jose Luis Seijo Gonzalez

Profit up in Q3 at Carib Cement

October 23, 2014 by IC Insider.com

Caribbean Cement reported profit of $78 million for the September 2014 quarter, losses of $89 million in the second quarter, helped pull the results down to just $25 million, for the nine months to September this year.
A profit of $32 million was reported in the nine months to September last year. The 2013 profit performance includes exceptional income of $591 million arising from the reversal of charges previously accrued from the debt restructuring with the parent company, Trinidad Cement, but the results for that year also had some exceptional charges, that have not recurred in 2014, including foreign currency losses amounting to $689 million.
Sales Volume| Both domestic and export cement sales volume grew over the nine month period, 2 percent in the local market and 7 percent for exports, while clinker sales grew from 6,700 tonnes to 80,400 tonnes to satisfy the contract to supply clinker to Venezuela. Overall, the plant sold a total of 650,000 tonnes of cement and 80,000 tonnes of clinker, well below the rated capacity of the plant. Sales revenue amounted to $3.5 billion in the September quarter and $10.75 for the year to September, up from $3.2 billion for the September 2013 quarter, and $8.9 billion for the nine months. While the volume of local sales rose, export of cement fell but clinker is up in the quarter.
Outlook| “The recent trend in the domestic market is expected to continue as well as improvement in the export earnings. In addition, we have entered into a new agreement to supply 240,000 tonnes of clinker to Venezuela, starting shipments in October 2014. We therefore remain cautiously optimistic that these favourable results can be sustained.” New chairman Christopher Dehring stated.
The 2015 year, could well experience further growth in domestic sales, as the local economy slowly improve as interest rates should continue to recede, thus lending some life to the construction industry.
But the company continues to be saddled with high debt and the cost of servicing it, which for the nine months is $250 million. With profit after depreciation, but before interest being $270 million, the risk of falling into a loss is great, unless volumes increase at a faster pace that is has so far this year.
The company has accumulated a pile of losses and will require several years of profitable trading to wipe it off and commence the payment of dividends, until then investors will have to look to growth in profits and movement in the stock price for compensation.

Filed Under: Company News, Company Results Tagged With: Caribbean Cement, Christopher Dehring

Dehring now Caribbean Cement chair

October 16, 2014 by IC Insider.com

Christopher Dehring has been appointed Chairman of the Board of Directors of Caribbean Cement (CCC) Company and its subsidiaries, effective October 14, 2014, a release from the company stated.
The appointment is in line with IC Insiders report, that he seems slated for the post following the shake-up of the board of CCC’s parent company, Trinidad Cement. The company also reports that Messers Parris Lyew-Ayee and Dehring have also been appointed members of the Board Audit Committee.
After a long running battle between a group of disgruntled shareholders and the former board of Trinidad Cement, the way was cleared for an extraordinary general meeting to be held in August which ousted a number of directors from that board, as well as the CEO Rollin Bertrand. This led three members of the CCC board to hand in their resignations, including its former chairman, Brain Young.