Saudi Cement 3Q14 profits better than expected

Saudi Cement 3Q14 profits better than expected
24 October 2014

Saudi Cement posted better than expected 3Q14 financial results, beating consensus estimates, according to Al-Rajhi Capital. The cement producer’s net profit grew marginally to SAR232m (US$61.8m) by +1.3 per cent YoY. The Saudi cement sector is gradually recovering from the effects of a labour crisis, with total local sales growing 5.4 per cent YoY in September.

Saudi Cement sold 1.64Mt of cement in the domestic market, down -8.5 per cent YoY, in line with Al-Rajhi’s expectations.

However, Saudi Cement is losing market share as its local sales declined 16.5 per cent YoY in the first nine months of 2014, while the overall sector saw a decline of only 4.8 per cent over the same period.
For now, the research firm is reiterating its ‘Neutral’ rating on Saudi Cement, with a price target of SAR127.1/share.

Published under Cement News