Raysut Cement posts lower earnings in first quarter

Raysut Cement posts lower earnings in first quarter
Published: 25 May 2010

Raysut Cement, Oman’s largest cement manufacturer, reported a 32 per cent decline in sales revenue for the first quarter of this year, citing heightened competition from imports.
 
Revenues fell to OMR16.3m during three month period ending on March 31, 2010 compared to earnings of OMR23.9m achieved during the corresponding period in the previous year.

Profit before tax stood at OMR6.81m for the first quarter of this year, against OMR7.84m earned during the corresponding period of last year, a decline of 13 per cent.
 
“The decline in profit may be attributable mainly to competition from the external market since the second half of the previous year and demand recession in the export markets creating pressure on sales volume and pricing.
 
Cost reductions are on the positive side reducing the impact, however. In consequence, average profit per tonne has improved,” Mohammed bin Alawi Ali Muqaibal, Chairman of the Board of Directors, said in the Directors’ Report.