Aslak’s Q3 results good but not satisfactory, says CEO

United Wire Factories Co. (Aslak) recorded strong performance in the third quarter amid current market conditions compared to peers, but the company’s results were still unsatisfactory, CEO Abdul Karim Abdullah Al Shamekh told Argaam.

The slowdown in the construction sector, fierce competition, and lower demand led to a slump in selling prices, which weighed on the company’s profit margins.

Meanwhile, prices of raw materials also increased, hiking costs of production.

However, the Saudi company has managed to cut costs in response to market conditions, reducing expenses by more than 10 percent, Al Shamekh said.

Aslak reported a net profit of SAR 7.2 million in Q3 2017, down 49.6 percent year-on-year (YoY).

Earnings for the first nine months plunged 78 percent YoY to SAR 15.4 million.

The firm is looking to capitalize on market opportunities in Iraq, backed by improved Saudi-Iraqi relations, the CEO said.