Trinidad Cement Limited
Annual Report 2012
26
Group Chairman’s Report 2012
THE CONTEXT
The very difficult regional economic environment within which the TCL Group
operated during 2011 carried over into 2012. In fact, the difficulties intensified
in the earlier part of the year. Some measure of relief was felt, however, by
mid-year after the end of the prolonged strike at TCL in Trinidad as well as
the execution of the Override and Intercreditor Agreements with its Lenders,
which facilitated the debt restructuring. The Group was then able to secure a
significant injection of much needed working capital by way of pre-payments
from two of its largest customers.
Whilst world output grew by 3.2% in 2012, not all countries experienced growth.
TheEuro-Zone and toa lesser extent theU.S.A.,continued toexperiencedifficult
economic conditions. Nearer to home, the regional economies and cement
markets remained generally flat with the exception of Guyana and Suriname,
which continued to fare well in the aftermath of the global financial crisis.
The situation for the Group was further complicated by the very protracted
and difficult negotiations for the restructuring of its debt portfolio and the
consequential stringent liquidity situation being experienced, which severely
affected operations. To add to the complexity, industrial action, which led to
a serious curtailment of operations at the Trinidad plant during the first two
quarters, extensively occupied the attention of the Board and Management.
It is against this background that the Group’s performance in 2012 must be
assessed. This performance is analysed in much greater detail in the Group
CEO’s Report and Management Discussion, which follows on Page 30.
Nevertheless, the Board is satisfied with the progress made to date in turning
around the fortunes of the Group. In this regard, strategic initiatives are being
pursued, which are expected to bear fruit in the not too distant future.
SUMMARY FINANCIAL PERFORMANCE
The Group’s Earnings before Interest, Tax, Depreciation and Amortisation
increased by 82% from the 2011 level to $159.9 million in 2012. This was
achieved notwithstanding production difficulties at Barbados and Jamaica.
The Board is satisfied
with the progress
made to date in
turning around
the fortunes of the
Group. In this regard,
strategic initiatives
are being pursued,
which are expected
to bear fruit in the not
too distant future.
The Year in Review
