RAK Cement posted losses for the third quarter and the first nine months this year.
During the third quarter, the company made an after-tax loss of AED11.4m, following sales of AED41.8m against a cost of sales of AED50.6m.
As a result, the first nine months, saw RAK losses increase to AED16.38m from AED146,600 the previous year. Sales for the period fell by 24.2% to AED138m.
The result has been attributed to a drought in new projects in the UAE following the economic downturn. In addition, lower price realisation and sustained costs have hit margins. “An increase in export sales during the thirds quarter helped to compensate for the lower volumes in the local market,” said M R Richardson, general manager. “The selling prices were below the previous year and this has decreased the profitability.”