Crown Asia earnings jump by 14%

CROWN Asia Chemicals Corp.’s earnings jumped by 14% to P114.5 million in 2016 from P100.14 million a year ago, driven by strong sales of its pipe business.

In a regulatory filing, the listed maker of premium polyvinyl chloride ( PVC) compounds and Crown pipes reported a 4% increase in revenues to P1.12 billion for 2016, from P1.07 billion in 2015.

Crown Asia Chemicals, in a separate statement on Tuesday, said pipe group revenues surged 29% to P519.97 million last year. This was attributed to a 27% increase in project sales to P328.09 million and a 33% rise in trade sales to P191.88 million.

The strength of the pipe business helped offset an 11% drop in revenues of the compounds division to P597.4 million in 2016.

The compound division accounted for 54% of Crown Asia Chemicals’ total sales, while the pipe group made up the remaining 46%.

“However, company management took a calculated business decision to protect its segment bottom line with adjustments in pricing to compete for revenues and sustain comfortable profit especially in export,” Crown Asia Chemicals said.

Crown PVC compounds are supplied to companies manufacturing wires and cables, integrated circuit (IC) tubes packaging, films, sheets and packaging products, while looking for opportunities for growth in the local and export sectors.

The company is planning to launch uPVC roofing materials, which have built-in UV protection features.

“Considering that the Philippines is a tropical island country, Crown’s new products will be a welcome choice for roofing materials. They act as natural insulator, keep inside temperature cooler and provide adequate natural lighting, thus minimizing power consumption,” Crown Asia Chemicals said.

Incorporated in 1989 as Crown Asia Compounders Corp., the company is currently engaged in the production of plastic compounds, PVC pellets, plastic pipes and related products for the construction and telecommunication industries.