RAK cement firm’s profit jumps 221% to Dh34.5m in first quarter

RAK cement firm’s profit jumps 221% to Dh34.5m in first quarter
Published: 23 April 2007

The Ras Al Khaimah Company for White Cement and Construction Materials announced yesterday a Dh34.5 million net profit for the first quarter of the year, a 221 per cent increase over the corresponding period of the previous year.

The company suffered a Dh28.4-million loss in the first quarter of 2006 due to losses on its investments when the local financial markets fell sharply.

Fahem Abdullah Yousuf, director-general, said the company has surmounted last year’s losses and generated outstanding results in the first quarter of this year.

He said that net profits are expected to increase during the coming quarters.

Yousuf said that sales during this year’s first quarter were Dh48.3 million, adding that the sales will increase as the market demand for white and grey cement has been rising in the UAE and throughout the region as a result of the huge boom in the real estate sector in recent years on the back of rising crude oil prices.

He added that operational profit is likely to exceed expectations as the company is currently working at full capacity to meet the market’s needs.

Strategies

Yousuf said capacity at the plants has been increased as the company installed new equipment including ovens and mills that increased daily production. The company is currently working on new marketing strategies to keep pace with market demand for white cement that has at least doubled.

The company’s operational profit is likely to exceed expectations as the company is currently working at full capacity to meet the market’s needs.