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FINANCIAL NEWS
Saudi Southern Cement Q1 profits decline 5.3%
19 Apr 2010
(MENAFN) A statement released by Southern Province Cement, Saudi Arabia’s largest cement maker by market value, said that the company’s net profit fell by 5.3 percent in the first quarter due to a continued export ban, Reuters reported.
The company said it made a net profit of $50.56 million in the three months to March 31 compared to $53.3 million in the same period the year earlier.
The decline is due to lower sale incentives and the continuation of an import ban since mid-2008, as well as a decline in other income and a rise in general and administrative costs, according to the statement.
Cement firms in Saudi Arabia are still faced with an export ban that was imposed almost two years ago after cement prices sky-rocketed, after firms sought more lucrative offers abroad, leading to a shortage in the local market.
The ban, compounded by supply from new production lines in the country, resulted in a saturation of the local market which led to lower prices and profits for cement producers
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