MANILA - Eagle Cement Corp said Tuesday its strong balance sheet would enable it to pursue expansion plans despite the impact of the coronavirus pandemic.
While its net profit declined to P1.2 billion from P1.6 billion due to the imposition of the enhanced community quarantine in March, its first quarter assets grew 2 percent to P49.9 billion from P49.1 billion in 2019 while liabilities declined, Eagle Cement told the stock exchange.
Expansion-related capital expenditures will continue while spending for non-critical projects and activities "will be trimmed," said Eagle president and CEO Paul Ang.
"Our strong financial position will allow us to weather this health crisis battering the economy without giving up major components of our expansion plans, which will secure our future growth," Ang said.
For this year, Eagle earmarked some P1.5 billion in capital expenditures for the constructions of its 5th cement mill in San Ildefonso, Bulacan.
The new mill will add 1.5 million metric tons of cement output, pushing the firm's total annual capacity to 8.6 million metric tons by the end of 2020.
The entire island of Luzon, home to roughly half of the country's 100 million population, was placed under lockdown in March to stem the spread of COVID-19. The measure has disrupted businesses.
Metro Manila and other areas remain under general community quarantine until July 31.