Firm December sales ahead of PPC forecast

Posted On Tuesday, 18 January 2005 02:00 Published by eProp Commercial Property News
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Domestic cement sales grew ahead of expectation in the December quarter, despite signs of strain in the building sector, SA's largest cement producer

Construction IndustryDomestic cement sales grew ahead of expectation in the December quarter, despite signs of strain in the building sector, SA's largest cement producer, Barloworld subsidiary PPC, said on Friday.

The cement maker is maintaining its earlier forecast of a 6%-8% rise in domestic demand this year.

PPC described trading conditions in its first quarter, ending December, as "favourable", with volumes growing ahead of expectation.

If these conditions continue, growth in demand could outstrip PPC's forecast, which some analysts have described as conservative.

Sales in SA were ahead of the most optimistic forecasts last year. PPC reported a 14% rise in sales in its financial year to September.

PPC warned on Friday, however, that the building sector was showing signs of strain. The group said shortages in construction materials and tradesmen had been reported. This was likely to temper the rate of growth in building activity and demand for cement this year.

Building industry body Masterbuilders SA confirmed earlier that there were shortages of critical building materials such as bricks. It warned that the problem was likely to be compounded as residential building activity remained strong, and demand in the nonresidential building sector picked up.

Meanwhile, PPC reported that Porthold, its troubled Zimbabwean operation, continued to experience difficult conditions, but both sales volumes and revenue were ahead of expectations and cash generation remained positive, it said.

 

Last modified on Monday, 21 October 2013 15:38

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