Trinidad Cement Limited
Annual Report 2012
60
Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December, 2012
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
3. Operating profit – continuing operations
2012
2011
$
$
Revenue
1,615,888
1,560,860
Less expenses:
Personnel remuneration and benefits (see below)
435,629
433,698
Raw materials and consumables
234,592
172,989
Fuel and electricity
390,210
412,712
Operating expenses
251,389
213,779
Equipment hire and haulage
142,262
155,400
Repairs and maintenance
95,136
95,933
Changes in finished goods and work in progress
(78,919)
2,332
Other income (see below)
(14,384)
(13,686)
Earnings before interest, tax and depreciation
159,973
87,703
Depreciation
149,486
170,979
Impairment charges and write-offs (Note 8 & 11)
88,552
79,386
Loss on disposal of property, plant and equipment
6,806
3,429
Operating loss
(84,871)
(166,091)
Impairment charges and write-offs
Included under plant and machinery is the Kiln 4 assets which is currently not operating. In accordance with IAS 36:
“Impairment of assets”, management assessed the kiln 4 assets for impairment and determined that an impairment
provision of $77.9 million, (2011: $61.3 million) was necessary to effectively write down the asset to its’ recoverable
amount. In accordance with IAS 2: “Inventories” a write-down of $7.8 million has been recognised as an expense for
spares relating to the idle Kiln 4 asset. The write downs arise from the delay in the projected reactivation of the assets.
Additionally, part of the asset was considered obsolete resulting in the write off of $2.9 million (2011: $18.0 million).
2012
2011
$
$
Personnel remuneration and benefits include:
Salaries and wages
349,049
356,063
Other benefits
47,450
38,972
Statutory contributions
18,927
18,698
Pension costs – defined contribution plan
4,029
3,999
Termination benefits
7,623
7,151
Net pension expense – defined benefit plans (Note 10 (b))
8,551
8,815
435,629
433,698
Operating profit is stated after deducting directors’ fees of:
Directors’ fees
792
790
Other income includes:
Delivery and trucking services
2,209
4,650
Miscellaneous income
12,175
9,036
14,384
13,686
4. Restructuring expenses
The debt restructuring expenses comprise stamp duty of $11.6 million (2011: nil), legal and advisory fees of $24.9 million
(2011: $40.4 million), previously unamortised fees on the original loans of $12.6 million (2011: nil), acceptance fees of nil
(2011: $35.3 million) and swap termination cost of nil (2011: $27.5 million).
