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Industry/Company Reports

In: Business and Management

Submitted By 929800006060
Words 544
Pages 3
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Sales fell more than a fifth as competition intensifies in UAE.

RELATED ARTICLES: Union Cement Company third quarter net falls 51% | UAE competition forces Oman cement price down 25% | RAK Cement posts US$1.07m loss on tighter market
Union Cement Company said it made a net loss of AED 22.3 million last year, with sales declining just over a fifth against 2009, as values and volumes of orders evaporated returns.
The Abu Dhabi-listed maker of cement and clinker said the loss compares to an AED 65.1 million net profit the previous year. Revenues fell 20.7% to AED 554.7 million from AED 699.8 million, with gross profits falling to AED 31.9 million from AED 132.2 million.
UAE cement companies have seen profits erode over the last 12 months as a drought in projects – mainly in Dubai - has seen steep falls in the volume and value of orders. Some suppliers have been selling into the Oman market to remain in the black, according to analysts and executives at Raysut Cement Company, an Oman producer.
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A fall in finance income and an AED 1 million loss through fair value adjustments added to Union Cement’s overall loss. Over the first nine months of 2010 the company saw an AED97.3 million net profit from last year become an AED8.7 million loss, with revenues falling 23% to AED438 million from AED561.5 million.
The company is based in Ras Al Khaimah and with its main production plant in the Khow Khwair area. The value of its non-current assets –

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