Lafarge Malayan Cement Bhd's pre-tax profit rose 10 per cent to RM414.647 million for the financial year ended Dec 31, 2011 from RM345.397 million in 2010.
In filing to Bursa Malaysia, the group said the higher profit was in line with the increase in revenue as well as the better performance of its ready mix businesses.
Revenue for the year amounted to RM2.552 billion, up 10 per cent from RM2.324 billion, mainly due to higher domestic demand, it said.
The higher domestic sales volume contributed to the rise in the cement segment’s revenue and profit.
However, it said that was offset by higher production costs primarily driven by an increase in energy and fuel costs, which it was unable to fully recover through price increases.
On outlook for the construction sector, Lafarge said it is expected to be positive this year, riding on the implementation of major infrastructure projects and on-going property development.
The domestic demand for cement and other building materials will continue to grow while the export market is expected to be stable, it said, adding the domestic market will remain competitive.
The group noted that it would continue to focus on product quality and customers’ needs while maintaining efficient operations.
The financial results in 2012 should remain satisfactory, it added. -- BERNAMA