SET-listed Siam Cement Group (SCG), Thailand's biggest cement maker and industrial conglomerate, is concerned about the impact of the tariff war and uncertainties in the global economy, aiming to revise the investment plan for 2019.
The company plans to spend roughly 40-50 billion baht this year and 50-60 billion baht in 2019.
This move comes after operating results for the first nine months this year saw higher revenue but lower profit.
SCG reported revenue for the first nine months at 361 billion baht, an increase of 7% from the same period last year thanks to higher revenue from all business units.
Profit for the period totalled 34.3 billion baht, a decrease of 19%, mainly from reduced performance in the chemicals business and asset impairments in the third quarter.
The company's export revenue stood at 97.9 billion baht for the period, an increase of 7%, which accounted for 27% of SCG's consolidated revenue.
"The year-to-date contraction was as result of rising raw material and energy costs, a global trade slowdown and asset impairment," said Roongrote Rangsiyopash, president and chief executive.
For the third quarter alone, SCG posted revenue of 123 billion baht, an increase of 9% year-on-year, while profit totalled 9.47 billion, a decrease of 20%.
"The contraction for this quarter was mainly from asset impairments charges of 1.67 billion baht in accordance with accounting standards and higher naphtha costs, which surged with global oil prices. SCG would have recorded 11.14 billion baht for the period without this impairment."
Mr Roongrote said in the chemicals business, the largest revenue contribution was recorded from January to September at 167.63 billion baht, an increase of 9%, owing to higher product prices while the profit for the period totalled 23.75 billion baht, a drop of 25% due to higher costs of raw materials.
The cement-building materials segment followed with 137.22 billion baht in the first nine months, an increase of 4% owing to regional markets expansion, but profit for the period totalled at 4.43 billion baht, a decrease of 18%.
SCG's packaging business recorded revenue of 65.97 billion baht from January to September, an increase of 10%, owing to higher product prices. Sales volume in packaging chains and profit for the period totalled 4.83 billion baht, an increase of 40%.
Mr Roongrote said SCG has launched a proactive plan with six directions, including broadening export opportunities in line with global market flows, managing energy costs, utilising digital technology to boost manufacturing efficiency and reduce costs, developing innovation and high value-added products and services, enhancing working capital efficiency and reviewing investment portfolio and investment costs, with the aim of maintaining business competitiveness.
"SCG is confident about our ability to strengthen domestic and regional businesses through a short-term strategy to adapt to changing circumstances using the six directions under our proactive plan and a long-term strategy that builds sustainable growth," said Mr Roongrote.