PETALING JAYA: Building materials firm Lafarge Malaysia Bhd slipped into the red in its first quarter ended March 31, reporting a net loss of RM48.9mil compared to a net profit of RM20.6mil for the same period a year ago due to lower operating profit and worsening pricing pressure.
The group’s revenue decreased by 16.1% to RM561.9mil year-on-year.
“This decrease was mainly attributable to the lower sales contribution from the cement segment due to the soft market demand, coupled with the increased industry capacity and the continued pricing pressures in the market,” it said in a filing with Bursa Malaysia on Monday.
“The decrease in revenue in the cement segment was partially mitigated by the higher sales contribution from the concrete segment."
The profitability was further hurt by higher operating costs attributed mainly to the higher fuel and electricity cost and a one-off separation cost incurred in the current quarter.
“The above was partially mitigated by a one-off gain on disposal of land and higher foreign exchange gains,” the company said.
On its outlook, Lafarge said the company expected its situation to remain challenging in view of the ongoing pricing pressure and competitive environment.
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