KUALA LUMPUR (Nov 16): Lafarge Malaysia Bhd saw its net loss widen 2.6 times to RM109.29 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM42.01 million a year ago, on higher operating loss from the cement segment due to weaker demand which led to lower sales volume, and a more competitive environment with a decline in selling prices.

This was compensated partially by higher export contribution.

This resulted in higher loss per share of 12.9 sen for 3QFY18 compared with 4.9 sen for 3QFY17.

Quarterly revenue fell 14.5% to RM495.12 million from RM578.85 million in 3QFY17 on lower sales from the cement segment caused by the soft market demand and continuing domestic pricing pressures.

In a filing with Bursa Malaysia today, the country's largest cement manufacturer said the increase in production cost due to the higher energy prices, lower production output and timing of scheduled plant maintenance further added to the group's loss for 3QFY18.

"In addition, the loss in the current quarter under review includes a one-off inventory write-off of RM22 million resulting from management's uncovering of inventory discrepancies relating to prior periods.

"Following a restructuring exercise towards a leaner organisation and vigorous cost-cutting measures, we achieved significant reduction in selling, general and administrative [costs] during the quarter, which partly compensated for the higher production costs," it added.

The weaker quarterly results increased its net loss for the cumulative nine months (9MFY18) by 93.9% to RM261.81 million from RM135.04 million a year ago, while revenue dropped 5.9% to RM1.57 billion from RM1.67 billion.

On prospects, Lafarge Malaysia said domestic market condition for the rest of 2018 is expected to remain challenging.

"However, demand for clinker in the export markets is expected to be strong with improving prices and our Langkawi plant is well-positioned to benefit from this. The group will continue its focus on cost reduction and further [enhance] operational efficiency," it said.

Lafarge Malaysia shares closed down one sen or 0.49% at RM2.02 today, with 712,000 shares done, bringing a market capitalisation of RM1.72 billion.