Zamil Industrial Investment Company (Zamil Industrial) Board would like to inform the shareholders of the company, as part of its transparency and disclosure policy, that its first quarter results for 2011 (period ending 31/03/2011) will experience a decrease in the net profits compared to same period of 2010 by around 35 per cent, hence issuing this profit alert.
The retraction in the consolidated results was due to drop in Gross Profit because of the continued pressure by local and regional competition on selling prices and volatility of raw material prices which affected margins, specifically in the steel sector. As a consequence, Net Profits was also impacted, although the company financial position and cash flows are solid. Moreover, the other sectors have performed well.
On the other hand, and further to the company announcement dated 30/01/2011, the instability in North Africa which is covered by our Egypt plant had an adverse effect on that operation which is expected to continue with vague signs of an immediate recovery.
Therefore, the Board would like to reassure its shareholders that it is closely working with the executive management to cease this temporary retraction in the results especially in the steel sector and revive it back to its normal profitable state.
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.