Saudi Ceramics sees 11% rise in 2010 profits
Manufacturer results beat both full-year and fourth quarter of 2009
Saudi Ceramic Company has seen net profits rise for both the final quarter of 2010 and the full year itself against their equivalent periods as its broader suite of products sees an uptake in the industry.
One of the strongest results for the two periods among listed construction suppliers, the company posted a SAR 56.8 million after tax gain for the fourth quarter against SAR 51.2 million and up from SAR 46.2 million in the third quarter, a rise of 11% and 23% respectively. Operating profits rose 12% against the previous year.
Full-year profits rose 11% - from SAR 197.2 million to SAR 219.2 million – with a similar percentage rise for its operating profits, which increased from SAR 196.7 million to SAR 221 million, or 11%, according to preliminary results posted on the Tadawul stock exchange.
Saudi Ceramic manufactures and distributes ceramic bathroom fixtures, including wall and floor tiles, as well as electric water heaters, but it has other business lines in industrial manufacture via ventures and subsidiaries.
Last week the company announced that it had completed the construction and installation of a bnew factory that will produce around 60,000 tonnes of clay pipes annually, making around US $30 million a year as a facility.
The new factory was funded 50-50 by Saudi Ceramic Company and a subsidiary, Ceramic Pipe Company. It will be overseen by its own management and general manager, according to Abdulkareem Al Nafie, CEO of Saudi Ceramic Company, who added to CW that it would primarily be focused on providing drainage solutions for residential buildings.
The results continue the sales surge for the company, having reported an 11% rise in net profits for the first nine months of 2010. Al Nafie earlier said Saudi Arabia had been “untouched” by the wider economic downturn.
At the end of 2010 the company recommended a dividend of SAR 3.5 per-share for the year, equivalent to 35% of its paid-up capital. Shares closed up 0.5% to SAR 147 yesterday, and have risen more than 29% in a year.