Al Khodari Q2 net profit slumps 43pc
Dubai, July 21, 2013
Saudi construction firm Abdullah A M Al-Khodari Sons Co posted a 42.9 per cent slump in second-quarter net profit on Sunday, citing higher costs including from the kingdom's reforms to the labour market.
The company made a net profit of 25.4 million riyals ($6.77 million) in the three months to June 30, compared with 44.5 million riyals in the same period of 2012, a statement to the Saudi bourse said.
Analysts at Global Investment House and Arqaam Capital forecast a net profit for the period of 29.5 million and 20 million riyals respectively.
Al Khodari attributed the profit drop to higher funding and materials costs but also "continued pressure from the labour market reforms".
The Saudi government is looking to boost the number of Saudi nationals in employment through methods such as introducing a quota system for the percentage of Saudis a company must employ and cracking down on illegal foreign workers.
The cost of these reforms have impacted the firm in recent quarters as well - its fourth-quarter net profit was down 50 per cent on the corresponding period of 2011. - Reuters