Arabtec announces $43.8m Q1 profit amid slowdown

CEO Riad Kamal says Q1 revenue of $480m, profits are line with company forecasts.
Arabtec announces $43.8m Q1 profit amid slowdown
PROFIT POSTED: Arabtec Holding CEO Riad Kamal. (ITP Images)
By Andy Sambidge
Mon 20 Apr 2009 07:07 AM

Arabtec Holding achieved consolidated profits of AED161 million ($43.8m) and consolidated revenues of AED1.8 billion ($480m) for the first quarter of 2009.

Commenting on the results, Riad Kamal, CEO of Arabtec Holding, said the results were in line with its forecast for 2009 but were down from AED231.4 million in the same period the previous year.

"The revenues and profits for the first quarter of 2009 are very satisfactory considering the difficult times that the real estate and construction sectors are experiencing in the UAE and are in line with our expectations for this period."

The UAE construction sector has been going through a major correction phase since the last quarter of 2008 and Kamal said the results achieved were due to the "positive steps" taken by management to "reducing costs and improving productivity and efficiency and to our continuous geographic expansion strategy and business consolidation".

He added: "We hope to deliver good results for the rest of this year also."

He added: "Our expansion in Saudi Arabia will compensate for the slowdown in the UAE market, which we hope will recover in the near future.

"We are seeking to establish successful operations in new geographic markets in the Middle East and North Africa in the very near future".

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