ArabianBusiness.com - Middle East Business News
Monday, 24 November 2008 00:39 UAE time

YOUR DIRECTORY /

Print this page Print this page | Email this to a friend Email this to a friend | Discuss this article (0 Comments) |

Union Cement Q2 profit down

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Monday, 28 July 2008

Union Cement Co posted a 60.2 percent drop in net profit in the second quarter on high raw material and fuel costs, as well as a sharp decline in income from investments in shares.

Net profit in the three months ended June 30 fell to 38.22 million dirhams ($10.41 million) from 96.06 million dirhams in the same period last year, below two analysts' forecasts in a survey last month.

Earnings per share for the second quarter fell to 0.06 dirhams from 0.15 dirhams, the UAE's third-largest producer by market value said in a statement on the Abu Dhabi bourse website.

Story continues below
advertisement

Income from investments in shares plunged 95.1 percent to 2.01 million dirhams, the Ras al-Khaimah-based firm said.

"The decrease in net profit is due to the high cost of raw materials, heavy fuel oil and the increase in cost of power generation due to the shortage of supply ... and the shortage of gas supply," the statement said.

Union Cement used diesel and leased power generators to compensate for the power supply shortage, it said. Other income dropped 79.9 percent to 610,000 dirhams, it added, without giving details.

Financing costs soared to 1.22 million dirhams from 48,000 dirhams.

Last month, the cement firm said it was considering using coal to fire one of its kilns instead of natural gas or heavy fuel.

Cementmakers in the United Arab Emirates are turning to imported coal as gas is scarce and a petrodollar-fuelled building boom shows no signs of letting up. (Reuters)

Print Print | Email Email | Discuss this article |


READERS' COMMENTS



Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code * Code


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

more » MIDDLE EAST MARKETS DATA

UCC.ADX

Last Price:

3.10

-0.30-9.09%

23 Nov 2008 07:30 GMT
(Market Closed)

CURRENCY CONVERTOR

 EMAIL ALERTS

  1. Union Cement Company

  2. Construction & Industry


EMIRATES ID DOWNLOAD

READER COMMENTS

  1. Labourers living in homes 'not fit for cats and dogs' 1
    23 Nov ' 08 at 13:48
    Dubai forgot the people who made it what it is with their sweat and toil... now Dubai will pay..  More »
Read all user comments >

BUSINESS FEATURES

Surfing Muscat's Wave

The Wave is one of few residential development taking shape on the shores of the seaside town of Muscat.

Al Zorah set to soar in Ajman

The multi-billion-dirham coastal development in Ajman aims to preserve the natural topography.

Landscaping a desert

Several Middle East projects have been put on hold, but the landscaping industry has sufficient work to keep it busy.

BUSINESS INTERVIEWS

Build it and they will come

Waleed Saffy, CEO of Bahrain’s Durrat Marina development, on the demand for more marinas.

Conservation starts now

Schneider Electric Gulf's managing director says energy efficiency is not just about saving electricity.

Building an identity

Wordsearch's William Murray talks about branding buildings and the importance of being brand-less.

MORE FROM ARABIANBUSINESS.COM