Saudi cement producer Arabian Cement Company (ACC) registered a decline in net profit to SAR277.4m (USD 73.9m) for the first nine months of 2008 from SAR306.1m in the same period of 2007, equal to a decrease of 9%, the company said in a filing to the Saudi Stock Exchange.
ACC attributed the decrease to lower production and higher costs as the company invested in establishing new subsidiaries.
The earnings per share (EPS) stood at SAR 3.47 for January to September 2008, down from SAR 4.14 a year ago.
The company reported a 2.6% year-on-year decline in the operating profit to SAR284.7m in the first nine months of 2008.
In the third quarter of 2008, ACC’s net profit dropped to SAR71.8m from SAR110.7m in the corresponding period a year ago.
In September 2008, the company said it will receive a loan of SAR 450 million to finance the construction of a cement plant for Jordan-based building materials supplier Al Katrana Cement Company LLC, in which ACC owns a 95% stake. The financing, provided by French bank BNP Paribas, will be repaid over a period of seven years.