Union Cement Company third quarter net falls 51%

Sales revenue fell 24% for the quarter.

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Union Cement Company has seen net profits more than half for the third quarter against the same period last year, with nine-month figures reversing an AED97.3 million profit into the red.

The Abu Dhabi-listed Portland cement supplier saw after-tax gains for the third quarter fall more than 52% to AED5.2 million against AED10.8 million last year. Sales revenues fell 24% to AED114 million against AED152.2 million as the cost of sales also fell.

The company is domiciled in Ras Al Khaimah with its main production plant in the Khow Khwair area. Over the first nine months the company saw an AED97.3 million profit from last year become an AED8.7 million loss, with revenues falling 23% to AED438 million from AED561.5 million.

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During the nine months the company spent AED21.36 million, with the change for its for-sale investments on a fair value basis declining from AED6.2 million to a loss of AED3.2 million.

The company’s cash-in-hand has sharply declined though its overall cash position has increased 8.5%. Other income rose 5% to AED6.4 million.

The results over the two periods reflect the tough market for cement and other building materials suppliers as the rate of construction in the UAE remains subdued. The company posted an AED9.8 million loss for the first half of the year against the same period in 2009.

Yesterday the company’s shares closed up 3.7% to AED1.37.