Alujain Corp. — Interim / Quarterly Report 2012

Oct 17, 2012

Alujain announces its Interim Financial Statements for the period ending 30th Sep, 2012 (Nine Months) Continue ..

2170 · 17/10/2012 08:32:13 · Announcement #27365 · View on Saudi Exchange

Alujain announces its Interim Financial Statements for the period ending 30th Sep, 2012 (Nine Months) Continue ..

8. Reasons for the increase/(decrease) in net profit:

(A) 3rd quarter, 2012 Vs. 3rd quarter, 2011

The decrease in net profit during Q3 2012 as compared to Q3 2011 is due to significant decrease in selling prices despite increase in sales quantities. The general and administrative expenses increased by SR 2.14 million during Q3 2012 mainly due to increase in salaries and related expenses and IT expenses.

(B) 3rd quarter, 2012 Vs. 2nd quarter, 2012

The decrease in net profit during Q3 2012 as compared to Q2 2012 is mainly due to a combination of reduction in selling prices and increase in raw material prices. There was a reduction of SR 1.19 million in the general and administrative expenses in Q3 2012 mainly due to lower IT related expenses. Also, the change in fair value of derivatives and foreign currency exchange gain/(loss) was favorable by SR 3.12 million and SR 2.96 million respectively in Q3 2012.

(C) YTD, 2012 Vs. YTD, 2011

The increase in net profit during YTD 2012 as compared to YTD 2011 is mainly due to higher sales quantities. The higher sale is mainly due to higher production as compared to the same period last year. During last year there was a turnaround related shut down. The general and administrative expenses increased by SR 3.51 million mainly due to increase in salaries and related expenses and IT related expenses.

Certain reclassifications were made in the comparative September 30, 2011 interim consolidated financial statements to conform to September 30, 2012 presentation.

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