Lucky Cement posts 9% fall in second-quarter profit

Lucky Cement posts 9% fall in second-quarter profit
Published: 31 January 2011

Lucky Cement Ltd, Pakistan’s biggest producer of the building material, said second-quarter profit fell nine per cent after transport costs rose and exports to Gulf nations declined.

Net income fell to PKR733.9m (US$8.58m), or 2.27 rupees a share, in the three months ended Dec. 31 from PKR805.2m, or 2.49 rupees, a year earlier, the cement maker said today in a statement to the Karachi Stock Exchange. Sales fell to 7.77 per cent to PKR7.09bn.

Pakistan increased domestic gasoline prices in line with higher international crude rates, raising the cost of transportation. Demand for Pakistani cement from Gulf countries has fallen as those nations have set up their own plants.

“Demand in regional markets except Afghanistan and Iraq is expected to be under pressure due to slack construction activities and surplus capacities,” Lucky Cement said in a statement today. “African markets will continue to be potential markets.”