Internal performance

Internal performance:

Year
Net profit margin (%)
 Operating Margin (%)
 2010
12.7
15.6
 2009
16.6
18.6
2008
14.5
16.4
2007
13.3
14.5
2006
8.4
11.5
2005
1.6
3.0
2004
4.7
7.7
2003
6.8
11.5
2002
4.2
9.1
2001
3.9
9.1

The net profit margin has grown continuously except in 2004, 2005 and 2010, similar to the operating margin.  In order to check whether there has been a deteriorating performance after 2010, we will see the quarterly margins as shown below:

Quarter
Net profit margin (%)
Operating margin (%)
Jun 30 2011
11.5
15.7
Mar 31 2011
8.6
11.8
Dec 31 2010
13.1
16.0
Sep 30 2010
16.0
18.7
Jun 30 2010
12.9
16.1
Mar 31 2010
8.8
11.3

Even though there was a dip in March 2011, it seems to improve in the 2nd quarter of 2011. Assuming that LMCE will be able to continue to manage its costs so as to squeeze in a better margin, we can be optimistic about the forecasted 2011 earnings. The “cost of goods sold” as a percentage of “sales“ also was seen to be stable without any disturbing trend for the last 3 yrs.

Year
2003
2004
2005
2006
2007
2008
2009
2010
COGS
62%
67%
75%
67%
64%
66%
64%
65%