Qassim Cement Co. — Earnings Release 2010

Jan 16, 2011

Qassim Cement Company announces its preliminary consolidated financial results for the fourth quarter of the year 2010.

3040 · 16/01/2011 15:44:57 · Announcement #19895 · View on Saudi Exchange

Qassim Cement Company announces its preliminary consolidated financial results for the fourth quarter of the year 2010.

1.Qassim Cement Company posted a consolidated net profit during the fourth quarter of SAR 112,784,701 compared to SAR 173,486,676 with decline of 34.99% for the corresponding period last year and showing an increase of 5.32% against a posted net profit of SAR 107,090,667 during the previous third quarter of the current year 2010.

2.The consolidated gross profit during the fourth quarter is SAR 134,714,177 compared to SAR 120,929,330 for the corresponding period last year, with increase of 11.40%.

3.The Consolidated operating profit during the fourth quarter is SAR 122,752,340 compared to SAR 102,972,705 for the corresponding quarter last year, with increase of 19.21%.

4.The consolidated net profit in twelve months was posted at SAR 500,864,489 compared to SAR 602,004,278 for the same period of the previous year which shows a decline of 16.80%.

5.The Earnings per share (EPS) for the twelve months amounted to SAR 5.57 against SAR 6.69 for the same period of the previous year.

6.The consolidated gross profit during the twelve months was posted at SAR 555,997,252 compared to SAR 569,232,932 for the same period last year, down by 2.33%.

7.The consolidated operating profit during the twelve months was posted at 517,846,368 compared to SAR 534,753,401 for the same period of the previous year, showing a decline of 3.16%.

8.The reason for the decline in the consolidated net profit during the fourth quarter of 2010 over the same period last year was due to the decline in the other income which fell by SAR 82.5 million being represented by the proceeds of fines and compensation derived from the delayed implementation of the work of the production line no.3 project from the contractors and suppliers, despite the rise in the gross profit during the fourth quarter of 2010 by +11.4% and the rise in the operating profit by +19.21% compared to the same period of last year.

The reasons for the decline in net profit for the year 2010 as compared to 2009 other than the item on other income as mentioned in the preceding paragraph as a major item are lower average selling price and lower sales volume in addition to increase of some other cost elements, most notably the increase in average electricity tariff rate per kilowatt. Certain balances have been reclassified in some comparative figures for the year ended December 31, 2009 to conform with the presentation of the current year.

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