| CATEGORY: SMALL CAPS NEWS SECTOR: CONSTRUCTION & MATERIALS |
Steppe lifts profits, fears tough conditions |
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Fri 05 Sep 2008
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LONDON (SHARECAST) - Kazakh cement manufacturer Steppe Cement reported a rise in profits even as it faced higher input costs and a contracting cement market.
Earnings per share in the six months to June 30 climbed to 12.8 cents from 9.3 cents over the same period a year ago as consolidated revenue rose to $52.3m from $38.7m.
The company benefited from increased output and a 25% rise in sales prices but saw production costs increase by 19% in line with Kazakh inflation, mainly due to rising costs for utilities, coal, transportation, oil and labour.
Steppe said Kazakhstan’s cement market fell by 15% during the six month period and that it expected a 20% decrease over the whole of 2008. It added that, while cement prices rose over the first half, they would be lower for the rest of the year.
“The credit tightening in the world markets still affects the availability of funds for the construction sector in Kazakhstan, on the other hand the government has pledged to maintain its support for housing and infrastructure investment,” the company said.
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