RAK Cement posts loss on tighter market
Ras Al Khaimah Cement Company, the biggest manufacturer in the UAE, reported loss of approximately AED 4 million in 2010. This was due to fall in inventories on a tighter market that saw cement sales volumes and values decline. The listed cement maker and trader said revenues fell to AED 227 million in 2010 against AED 283.5 million - down 19.7 per cent - though cost of sales increased to give gross profits of AED 4 million and an overall net loss of AED 3.94 million. Financial results for the year showed that the company's inventories at the end of last year fell by 18.4 per cent against the same time a year before from AED 76 million to AED 62 million. The company's cash position fell by more than half as the value of its total assets declined. Cement suppliers in the UAE have seen margins fall last year, due to drought in building projects and increased competition.