Jordan Cement Factories 2010 net income plunges
Jordan Cement Factories (JCF) announced that it barely broke even in 2010 as net income dropped from JOD46.3m (US$65.2m) in 2009 to just over JOD0.1m. A 40% drop in revenue was accompanied by a 21% increase in direct costs.
The company attributes the fall to four main factors. Firstly, recovery in the construction sector remained slow and cement demand did not recover well. JCF also said it experienced serious competition from new cement producers, especially those who import clinker from neighbouring countries at much lower costs than production in Jordan. In addition, the price of oil rose sharply which increased production costs. The company said it was unable to switch to cheaper energy sources due to “government hesitation for environmental reasons”.
Published under Cement News
