UAE-based producer, Ras Al Khaimah Cement has reported a fall in net profit of 90.9 per cent to AED0.27m (US$73,510) for the first-quarter of 2011, as the local market continues its weak performance.
Depressed cement demand and low prices resulted in the company’s revenue plunging by 24.1 per cent to AED53.3m. On an operational front, the company ended in losses of AED1.1m compared to AED0.5m in 1Q10.
Compared to previous quarter, the share of profits from associates also declined by 39.2 per cent to AED0.9m, reports Global Investment House (GIH). The company’s share price also witnessed 73.4 per cent increase in the past month. Despite this, the company is trading below its 2011 estimated book value of AED1.57. GIH says the company might see downward pressures on its share price following the announcement of these depressed results.