Lafarge Malaysia records 3Q18 net loss of MYR109m

Lafarge Malaysia records 3Q18 net loss of MYR109m
21 November 2018

Lafarge Malaysia recorded a net loss in 3Q18 of MYR109.28m (US$26m) down 160 per cent from MYR42.01m in 3Q17. Revenue fell by 14 per cent YoY to MYR495.1m in 3Q18.

The decline in earnings was down to lower cement sale and higher operating expenditure. Higher energy prices, as well as the lower production output and timing of the scheduled plant maintenance put pressure on costs.

"The decrease was due to the soft market demand and continuing domestic pricing pressures," said Lafarge Malaysia.

However, domestic sales were partially compensated by the higher export prices. "The operating loss in the cement segment was due to the weaker demand which had led to the lower sales volume and a more competitive environment with a decline in selling prices, but compensated partially by higher export contribution," said Lafarge Malaysia.

The loss in the recent quarter includes a one-off inventory write-off of MYR22m resulting from uncovering of inventory discrepancies. "Following the restructuring exercise towards a leaner organisation and vigorous cost-cutting measures, we had achieved a significant reduction in selling, general and administrative expenses during the quarter which partly compensated the higher production costs," said the company.

Published under Cement News