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Financial News

Apr 2014 Financial News

Carib raises cement prices again

Apr 02, 2014

CARIBBEAN Cement Company increased its prices by an average of 1.3 per cent yesterday.

The sixth price increase in 15 months will push prices 30 per cent higher than they were at the start of 2013.

The company said the adjustment in prices is being done to recover increases in input costs that it has faced over the past few months.

"The Jamaican dollar has depreciated by 2.8 per cent since I last communicated with you in December 2013," said Carib's general manager, Anthony Haynes, in a letter to customers.

The most recent increase was in January, when an average increase of three per cent was applied to all products. Then, like the previous three price adjustments (2.7 per cent in October, one per cent in July and three per cent in April), it was blamed on the rising input costs.

On January 7, 2013, the weighted average increase in prices was 16.5 per cent. The cement manufacturer said that it needed to adjust prices in order to generate the required cash flows to meet its debt payments.

Carib returned to profitability in its second quarter ending June 30, when it earned $360 million in net income, primarily as a result of debt forgiveness by its parent company.

The company also posted a $170-million net profit for the three months to September 30, 2013, and earned $82 million in the last quarter of 2013.


Source:
Jamaica Observer
Wednesday April 2, 2014

http://www.jamaicaobserver.com/business/Carib-raises-cement-prices-again_16387125