Construction market still extremely challenging, Arkan says
Company reports 12% decline in revenues for first quarter, though profits rise
Dubai: Arkan Building Materials, an Abu Dhabi-listed firm, reported on Monday a 4 per cent rise in its profits for the first quarter of 2019, reaching Dh12.2 million on the back of lower costs.
The company said it was able to continue reducing its costs across the business and that it recognised income during the quarter from the sale of scrap assets from the old Emirates Cement Factory.
Group revenue was lower year-on-year, however, falling by 12 per cent to reach Dh235 million as a result of what Arkan described as a “highly competitive market across all product lines.”
The company said the regional construction market “continues to be extremely challenging,” and that it is “yet to see the expected improvements in the market cycle” since the implementation of economic stimulus packages by the Abu Dhabi government to drive growth and foreign investment.