Vassiliko Cement in Cyprus issues negative profit warning

Vassiliko Cement Works Public Co Ltd (VCW.CY) issued a negative profit warning according to which the consolidated results for the third quarter of 2008 are expected to be lower compared to the results of the second quarter of the year. 

The deterioration is due to the Company’s obligation to the Commission for the Protection of Competition to maintain steady prices following its takeover of the operations of Cyprus Cement, along with the increase in the production cost due to the increased cost of fuel and energy, as well as the increased cost of raw material and staff. 

A year ago, VCW reported net profit of EUR 11.8 mln in the first nine months of the year, yielding an EPS of EUR 0.22 while in the second quarter of 2008, Vassiliko reported net profit of EUR 2.4 mln compared to EUR 4.7 mln reported in 2Q’07.