Emirates Business 24|7 reported that Oman's Raysut Cement has 22.9% rise in Q3 profit below analysts' estimates amid increased foreign competition and lower cement output.
According to Reuter’s calculations, the company made a profit of OMR 6.88 million. It earned a profit of OMR 5.6 million in the prior year period. Analysts forecast an average 58% rise in net profit.
Raysut said that competition from outside Oman put pressure on sales volume in the Q3. Lower margins from the sale of imported cement and lower cement production also hit profits.
Mr Mohammed Muqaibal chairman of Raysut said that "The cement industry in Oman, even with higher demand during the year is impacted by the competition from manufacturers in the UAE. The competition is likely to continue for some time."
In January to September 2009, Raysut had a net profit of OMR 24.18 million compared to OMR 26.13 million in the prior year period. It did not offer a breakdown of the quarterly data. It said that gains on investment activities for the 9th month period reached OMR 1.38 million compared to a loss of OMR 725,495 in the same period of 2008.
