Advanced Building Industries Co. — Earnings Release 2010

Jan 19, 2011

ZAMIL INDUSTRIAL ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR PERIOD ENDING 31/12/2010 (TWELVE MONTHS) (continued)

2240 · 19/01/2011 08:14:08 · Announcement #20005 · View on Saudi Exchange

ZAMIL INDUSTRIAL ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR PERIOD ENDING 31/12/2010 (TWELVE MONTHS) (continued)

(8) The results indicate noticeable improvement in gross profits during the twelve months and last three months of the year. They were mainly due to better margins because of overall efficiency improvements. Moreover, net profits have positively improved during the fourth quarter compared to the previous quarter (Q3) by 93.2 percent as sales volumes increased. On the other hand, the retraction in operating income was due to an increase in fixed costs because of growing demand on maintenance services in the air conditioning sector. Fourth quarter sales value increased by 8% while twelve months sales value marginally declined which was anticipated and expected. This was due to lower selling prices although sales volumes increased. Net profits slight decline in the last three months and twelve months compared to the same periods in 2009 was because of lower selling prices that affected margins. Moreover, new ventures launched in the past two years have started to show promising results.

Abdulla M. Al Zamil, CEO, stated that despite the slowdown in the building & construction industry, Zamil Industrial is well positioned to capture a considerable market share of local and regional ambitious infrastructure projects and expansions. The balanced business portfolio of Zamil Industrial has managed to sustain the performance especially in the Air Conditioning and Insulations sectors which achieved record results in 2010. The company operations are strategically located in geographies to cover the global demand with emphasis on emerging markets like India, Africa and South Asia and Far East regions.

(9) Certain figures for 2009 have been reclassified to conform with the presentation in the current year.

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