Yamama, Tabuk cement Q4 profit tumbles
Riyadh, January 17, 2009
Two Saudi Arabian cement producers said on Saturday profit fell in the fourth quarter on lower sales volumes following a government decision to ban exports.
Yamama Cement Company, the country's third largest cement producer, said net income in the fourth quarter dropped 33 per cent to SR85.1 million ($22.69 million) from SR126.9 million in the corresponding period last year.
'The reason for the decline (is) lower sales volumes due to the decision to ban cement export as well as the periodic maintenance of some main production lines,' Yamama said in a statement on the bourse website.
Earlier on Saturday, Tabuk Cement said net profit in the fourth quarter had fallen more than 68 percent on lower sales and rising costs as a ban on exports kicked in.
In a regulatory filing, the cement producer said net income in the fourth quarter was SR14.5 million compared with SR45.7 million in the same period in 2007.
The firm said the decline was down to renovation work at its Amrat plant which led to a fall in production and rise in costs.
'In addition (there was) a decline in sales and revenues,' the firm said.-Reuters