China: West China Cement has reported that its gross profit fell by 23.7% to US$109m in 2012 from US$142m in 2011. The Chinese cement producer attributed the shortfall on a decreasing selling price, increases in electricity costs and higher overheads due to lower productivity.
The company's revenue rose by 10.5% to US$567m from US$513m. Earnings before interest, taxes, depreciation and amortisation (EBIDTA) fell by 9% to US$170m from US$187m. Cement sales volumes rose by 22% to 14.3Mt in 2012 from 11.7Mt in 2011.
In its annual report West China Cement reported that it is consolidating its position as the largest cement producer in Shaanxi Province as well as expanding into Xinjiang Province, where economic and infrastructure growth promoted by the Chinese government's Western Development Policy remains a key feature of the 12th Five-Year Plan. For 2013 the company expects the recovery in infrastructure demand in the second half of 2012 to continue. However, increased overall capacity in Xinjiang Province is expected to continue impacting upon cement prices in that region.
