Lafarge Malayan Cement pretax profit rises

Lafarge Malayan Cement pretax profit rises
22 February 2012

Lafarge Malayan Cement Bhd's pre-tax profit rose 10 per cent to MYR414.65m (US$136.7m) for the financial year ended Dec 31, 2011 from MYR345.397m in 2010, Business Times of Malaysia reports.

In filing to Bursa Malaysia, the group said the higher profit was in line with the increase in revenue as well as the better performance of its ready mix businesses.??Revenue for the year amounted to MYR2.552bn, up 10 per cent from MYR2.324bn, mainly due to higher domestic demand, it said. ??The higher domestic sales volume contributed to the rise in the cement segment’s revenue and profit.

However, it said that was offset by higher production costs primarily driven by an increase in energy and fuel costs, which it was unable to fully recover through price increases.

On outlook for the construction sector, Lafarge said it is expected to be positive this year, riding on the implementation of major infrastructure projects and on-going property development.

The domestic demand for cement and other building materials will continue to grow while the export market is expected to be stable, it said, adding the domestic market will remain competitive. ??

Published under Cement News