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FINANCIAL NEWS
UAE cement firms’ Jan-Sep net profit down 86.6%
06 Dec 2011
(MENAFN) Global Investment House, the Kuwaiti investment firm, said that during the January-September period, net profit for UAE cement firms fell 86.6 percent to USD10.9 million, reported The National.
The company added that gross margins for the country’s cement companies was at 4.8 percent, recording the lowest level ever, since output costs grew 9 percent, adding that the weak recovery in the property and construction sector hampered cement makers, driving down prices.
It also said that between 2004 and 2011, manufacturing capacity in the GCC increased more than a double, however, the slowdown in the property sector, which represented between 65 percent and 70 percent of the business, dampened the outlook for a number of firms.
It is worth noting that in the January-September period, overall revenue for cement firms in the GCC rose 10.9 percent, reaching USD3.3 billion from USD3.05 billion in 2010’s same period.
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