Middle East Specialized Cables Co. — Earnings Release 2012

Feb 24, 2013

MESC Announces Annual Financial Results for the Period Ending 31/12/2012

2370 · 24/02/2013 16:20:48 · Announcement #29154 · View on Saudi Exchange

MESC Announces Annual Financial Results for the Period Ending 31/12/2012

Middle East Specialized Cables Co. (MESC) announces annual Consolidated financial results for the period ending 31/12/2012 as followed:

1. The net profit amounts to SR 31.1 million versus net loss of SR 120.1 million for last year.

2. The profit per share amounts to SR 0.78 versus loss of SR 3.00 for the last year.

3. The gross profit amounts to SR 161.2 million versus gross profit of SR 95.6 million for the last year, an increase of 69%.

4. The operating profit amounts to SR 53.5 million versus an operating loss of SR 20.4 million for the last year.

5. The reason for recording net profits during the current year comparing to net losses for the last year is due to the increase of sales volume of control cables which have better profit margins relative to sales volume of power cables which have lower profit margins despite the decline in the total sales volume of the company during the same period. Not to mention the decrease in the companys share of losses of our Jordan subsidiaries and realizing some profits in MESC-RAK (wholly owned subsidiary) in the current year. In addition to that, the company did not record any impairment of goodwill related to its investment in MESC-Jordan during the current year as the company has written off the whole balance of goodwill last year.

On the other hand, the reason for the decrease of around SR 2 Million in final net profit comparing to the net profit announced in the interim results is due to the additional provision expenses provided in our Jordan subsidiary related to a lawsuit filed by the company against an insurance company. The lawsuit is still under consideration of the court.

Certain comparative figures have been reclassified to conform with the presentation in the current period.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.