Lafarge Malayan Cement 3Q profit down 9%

Lafarge Malayan Cement 3Q profit down 9%
Published: 24 November 2009

Lafarge Malayan Cement Bhd, pre-tax profit in the third quarter ended Sept 30, 2009 fell nine per cent to RM126.472m from RM135.060m in the same quarter last year.

The lower earnings are mainly attributed to lower sales volume, lower contribution from exports due to a weaker US Dollar, higher maintenance costs due to timing of scheduled plant shutdown and lower contributions from ready-mixed concrete operations, trading and in Singapore.

Its revenue fell 12 per cent to RM618.319m from RM699.158m due to lower sales volume in all business segments, resulting from contraction in demand for building materials.

However, for the Jan-Sept period, its pre-tax profit rose to 18 per cent to RM317.931m from RM268.346m in the same period last year although revenue fell to RM1.859bn from RM1.889bn. The performance in the period is mainly driven by higher export volume, improved plant performance and strict cost control, partly offset by higher fuel prices and electricity and lower contribution from operations in ready-mixed concrete, trading and in Singapore, it said.

It said no significant change to the business condition is anticipated in the last quarter of this year and taking into consideration the nine-month financial results, the group is optimistic of achieving another satisfactory performance this year.