Yanbu cement reveals full-year profit growth
Analysts blame drop in Q4 income on wider Saudi market slowdown
Yanbu Cement revealed a 14% increase in net profits for 2013 to $218m (SR821m), although its year-on-year sales for the fourth quarter dropped by 21% to $42.6m (SR160m).
The company said Q4 profits had fallen due to lower sales and higher costs as it had to import clinker.
An analysts' note by NCB Capital described the firm's quarterly results as "weak", as they were 7-15% below analysts' forecasts.
It said this was due to the slowdown in construction activity in the Kingdom during October and November as a result of the recent crackdown on illegal workers.
"We believe this supports our view that the whole sector will be under pressure in the next couple of quarters," it said.