RAK Cement posts US$1.08m loss
Ras Al Khaimah Cement Company made a loss of almost AED4m (US$1.08m) last year, as inventories fell on a tighter market that saw cement sales volumes and values decline.
The listed cement maker and trader said revenues fell to AED 227m in 2010 against AED 283.5m – down 19.7% - though cost of sales increased to give gross profits of AED 4 million and an overall net loss of AED 3.94 million.
Financial results for the year, published Thursday, show that the company’s inventories at the end of last year fell 18.4% against the same time a year before – from AED 76m to AED62m. The company’s cash position fell by more than half as the value of its total assets declined.
Cement suppliers in the UAE have seen margins fall in the last year, as a drought in building projects has increased the competition to supply to active sites. Some companies have been marketing themselves in Oman to capture the greater building activity in the country, despite some analysts declaring that the cement boom in the Sultanate is “over”.
Published under Cement News
