KUALA LUMPUR (Feb 23): Lafarge Malaysia Bhd announced it swung into a net loss for the first time since 1999, after it posted a fourth consecutive quarter of net losses hit by higher costs amid weaker demand for its cement products.

In a filing with the stock exchange today, the group said it recorded net losses of RM80.12 million for its fourth quarter ended Dec 31, 2017 (4QFY17) compared to a net profit of RM33.94 million in 4QFY16.

Lafarge posted net losses of less than RM50 million in each of the first three financial quarters in the financial year ended Dec 31, 2017 (FY17).

Quarterly revenue shrank 9.4% to RM576.36 million compared with RM636.37 million in the corresponding quarter last year, due to lower sales contribution from its cement segment given the soft market demand, increased industry capacity and continued pricing pressure.

Lafarge said it sank deeper into the red in the quarter under review due to lower revenue recorded and higher costs.

“The situation was further exacerbated by the increase in operating costs mainly from higher fuel cost and higher one-off separation cost,” read the filing.

For its full financial year ended Dec 31, 2017 (FY17), Lafarge made a net loss of RM215.16 million compared to a net profit of RM76.67 million the year before.

Revenue, meanwhile, fell 11.9% to RM2.25 billio, from RM2.55 billion a year ago on the same reasons as above.

Lafarge attributed the losses to lower revenue contribution from the cement segment, higher costs, and higher depreciation of property, plant, and equipment, as well as higher one-off separation cost.

Going forward, the building materials group said it will focus more on cost reduction through plant modernisation and operational efficiency.

“We will also continue efforts of differentiation on product offerings, services and route to market through application-based offers,” the group said in its bourse filing.

It also said it will take advantage of the "good momentum" in infrastructure projects and is determined to strengthen its leading position in the Malaysian market.