Ducab reports strong sales growth in first half 2011

Ducab, the leading manufacturer of high-quality power cables in the Middle East, today announced record sales of AED 2.4 billion for the first 6 months of 2011 – a 50% increase on last year, and volume growth of 13.5%.  Cables sales led the way with AED 1.4 billion and 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 AED 302 million of loans, compared to AED 73 million in the previous year.

 

Looking forward to the second half of the year, Ducab is working to complete the final commissioning of the AED 500m joint venture with DEWA and ADWEA. The new plant extends Ducab’s product range into the Extra High Voltage cable segment - manufacturing cable systems up to 400kv.  First sales are expected in the second half of the year.

Posted on Sep 12, 2011 by Ducab