Lafarge Pakistan Cement Ltd (LPCL) has incurred a PKR328.44m (US$3.75m) loss after taxation of during January-September 2011 against loss of PKR1.045bn incurred in the corresponding period last year.
Its net sales increased in Jan-Sept 2011 to PKR5.599bn from PKR5.039bn the previous year. The company’s distribution costs fell from PKR378.86m to PKR185.224m and its administrative expenses edged up YoY from PKR322.324m to PKR342.289m. LPCL also incurred a financing cost of PKR774.312m against PKR724.068m in the first nine months of 2010.
In 3Q11 alone, the company reported a loss of PKR308.389m compared to PKR341.96m in July-Sept 2010.
Major General Ret. Rehmat Khan, CEO of Lafarge Pakistan pointed out in the company’s report that the operating loss can be attributed to a number of factors. Energy costs and power outages have been the main reason for the cost escalation. Additional factors include the impact of fluctuating foreign exchange rates and a significant increase in overall costs of operation due to cost of local coal and alternative fuels.
However, he said that the company is undertaking serious cost-cutting measures to further reduce operating and overhead costs during this last quarter of 2011 with the aim of overcoming the loss.