Middle East Specialized Cables Co. (MESC) announces interim financial results for the period ending 30/06/2011 as followed:
1. Net Profit during the second quarter amounts to SR 1.3 million versus net profit of SR 4.7 million for the same quarter of the previous year, a decrease of 72% and versus a net loss of SR 21.0 million for the previous quarter.
2. The gross profit during the second quarter of 2011 amounts to SR 20.0 million versus gross profit of SR 39.9 million for the same quarter of last year, a decrease of 50%.
3. The operating loss during the second quarter amounts to SR 6.1 million versus an operating profit of SR 13.5 million for the same quarter of last year.
4. The net loss during the six months amounts to SR 19.6 million versus net profit of SR 7.8 million for the same period of last year.
5. The loss per share during the first six month of 2011 amounts to SR 0.50 versus profit of SR 0.20 for the same period of last year.
6. The gross profit during the six months of 2011 amounts to SR 24.3 million versus profit of SR 74.5 million for the same period of last year, a decrease of 67%.
7. The operating loss during the six months amounts to SR 27.6 million versus a profit of SR 23.1 million for the same period of last year.
8. The reason for the decline in gross profit and recording net loss during the period of the first six month comparing to the same period of last year is due to the decline in profit margins due to the continuing tough competition between cables manufacturers as a result of new factories opening in the region. While the reason for recording net profit during the second quarter comparing to last quarter is due to the improvement in profit margins and reversing the net provision taken for 2006 & 2007 Zakat differences, as the company has received the final assessment of these 2 years with a reduction of SR 9.2 million.
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.