Arkan Building Materials Co made a net loss of about 450.5 million dirhams ($122.6 million) in the fourth quarter as it booked losses on equity investments and the value of its steel inventory declined.
The company made a net loss of 291.6 million dirhams, or 0.17 dirham a share, in 2008, compared with profit of 202.7 million dirhams, or 0.12 dirham a share, a year earlier, it said in a statement on the Abu Dhabi bourse website.
Arkan did not give quarterly data, which Reuters calculated from previous financial statements showing net profit of 158.9 million dirhams in the first nine months of 2008.
In 2008, Arkan said booked a net loss on the value of investments of 100.27 million dirhams and a writedown of 429.5 million dirhams against the value of its inventory of steel, it said.
"The company has a portfolio of regional stocks whose market value witnessed a huge drop, especially in the last quarter of 2008," it said.
"Prices for most of builing materials also fell during the year 2008 and the inventory of steel rebars the company carried declined substantially in value during the fourth quarter."
Revenues for the year rose to 695.16 million dirhams from 346.36 million dirhams. The company's shares rose about 20 percent in February. (Reuters)For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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