RAK cement firm’s quarterly profit nearly triple

RAK cement firm’s quarterly profit nearly triple
14 April 2009

Ras Al Khaimah Cement Co said its first quarter profit almost tripled as sales increased, Gulf News reported.

Net income for the first quarter was Dh29.4 million, a gain of 187 per cent year on year, but a 25 per cent decline quarter on quarter. In the last two quarters, net margin improved to just over 30 per cent.

According to Al Mal Capital, the company reported improved results because of better margins from sale of Powercrete and fewer interruptions in natural gas supply.

However, analysts said they are sceptical the improved margins could be maintained as seasonality kicks in.

It is likely that natural gas supplies will once again be interrupted during the summer and, consequently, net margins could fall short of the 30 per cent level.
Published under Cement News