Lafarge 1Q hit by weaker demand, competition

by TMR

Lafarge Malaysia Bhd saw its net loss widen by 40.5% year-on-year (YoY) to RM68.73 million for its first quarter ended March 31 this year (1Q18) owing to weak demand and higher competition in the construction industry.

The cement concern said the weaker quarterly performance was exacerbated by the increase in coal and petcoke prices coupled with a one-off gain on a land disposal that was recognised in 1Q17.

Revenue slipped by 2.7% YoY to RM546.83 million on the lower sales from the cement business which was brought on by soft market demand, increased industry capacity and pricing pressures.

Lafarge said it will focus on reducing cost and improving operational efficiency on expectations of a challenging operating environment while seeking to grow its dry-mix business.