Zamil Industrial Investment Company (Zamil Industrial) has announced its consolidated interim financial results for the period ending 31 December 2011:

1. Net profits for the fourth quarter of 2011 were SAR 36 million (USD 9.6 million), compared to SAR 61.3 million (USD 16.4 million) during the same period in 2010, representing 41.4 percent decrease, and compared to SAR 33.6 million (USD 9 million) posted in the previous quarter (Q3) – an increase of 7.1 percent.

2. Gross profit for the fourth quarter of 2011 was SAR 309.3 million (USD 82.5 million), compared to gross profit of SAR 319.1 million (USD 85.1 million) for the same period in 2010, a decrease of 3.1 percent.

3. Operating profits during the fourth quarter posted a decrease of 32.5 percent down to SAR 56.3 million (USD 15 million) from SAR 83.5 million (USD 22.3 million) in the same period in 2010.

4. During the twelve months ending 31 December 2011, net profits were SAR 154.2 million (USD 41.1 million) compared to SAR 211.1 million (USD 56.3 million), representing a decline of 27 percent over the same period in 2010.

5. Earnings Per Share dropped to SAR 2.57 (USD 0.69) from SAR 3.52 (USD 0.94) in the same period in 2010.

6. Gross profit for the twelve months was SAR 1,070.7 million (USD 285.5 million) compared to SAR 995.4 million (USD 265.5 million) for the same period in 2010, an increase of 7.6 percent.

7. Operating profits for the twelve months were SAR 272 million (USD 72.5 million) compared with SAR 287.4 million (USD 76.7 million) for the same period in 2010, a decrease of 5.4 percent.

8. The reason behind the decline in performance during the fourth quarter and twelve months of 2011 was mainly due to lower gross margins that were attributed to ongoing competition and pressure on selling prices in the steel sector. The steel sector profitability had the most impact while the air conditioning and insulation sectors sustained positive growth. Consolidated revenues increased by 18 percent in addition to increased production volumes in all sector businesses.
   
   On the other hand, the decline in Net Profits for the fourth quarter and twelve months of 2011 was due to the decline in the Other Income as a result of reclassification of certain figures for the comparison period, in addition to the increase in Financial Charges and Minority Interests which was a consequence of the consolidation of RANCO Zamil Concrete Industries Co. Ltd. and Gulf Insulation Group Company as of 1st January 2011.

9. Certain figures for 2010 have been reclassified to conform with the presentation in the current year.