Ducab posts 50pc rise in H1 sales
Dubai, August 10, 2011
Ducab, a leading manufacturer of high-quality power cables, has posted record sales of Dh2.4 billion ($653 million) for the first six months of 2011, marking a 50 per cent increase on last year.
Sales volume went up by 13.5 per cent, with cable sales leading the way with Dh1.4 billion, while copper products, Ducab’s newest product line, accounted for the balance. The sales growth was driven by strong sales in all GCC markets with the UAE, and especially Abu Dhabi, providing significant growth.
“We are pleased with the results although market conditions remain very competitive and pricing still has a long way to go before margins are restored to reasonable levels. We are optimistic that these volumes are yet another positive sign that the UAE and regional economies are recovering”, said Andrew Shaw, managing director, Ducab.
Despite continued high copper prices affecting working capital, Ducab’s cash flow remained positive in the period with the company repaying Dh302 million of loans, compared to Dh73 million in the previous year.
Looking forward to the second half of the year, Ducab is working to complete the final commissioning of the Dh500m joint venture with Dewa and Adwea. – TradeArabia News Service