Southern Cement’s Q2 operating profit misses estimate: Alistithmar Capital

Southern Province Cement Co.’s second-quarter operating profit (SAR 272 million) fell below Alistithmar Capital’s estimate of SAR 321 million by 15 percent, the brokerage firm said in a report.

The company was said to have outperformed competitors on deliveries year-to-date, however, costs associated with clinker imports weighed on its margins.

The investment arm of Saudi Investment Bank recommended a “neutral” rating on the stock and set its target price at SAR 105.

Only July 14, Southern Cement reported an eight percent drop in Q2-2015 net profit, which totaled SAR 270.3 million compared to SAR 294.2 million in Q2-2014.