Oman Cables Industry, the Muscat based manufacturer and exporter of cables and wires, has announced a double digit growth in sales for 2011.
While net profits for the company fell 20.2%, from $21.3m to $17.1m, the company said it had managed to keep its financial condition healthy during a troubloing period wracked by the global financial crisis and effects of the Arab Spring. Overall net profit for the Group was $17.9m from $21.3m, a 15.3% decrease.
“The decrease in profitability is primarily due to the pressure on operating margins, which resulted due to increased competition and over capacity in the region. This was further coupled with increased input costs like the rise in raw materials prices, increased freight cost, increased financing cost and escalation in administrative expenses due to inflation factors,” the company said in a statement.
However, the compay says revenues from sales increased to $628.8m, a 26.3% jump from 2010. Group sales hit $707.3m, a 35.6% increase from the same time last year.
“The increased sales is attributable to increased volumes due to increased market share in traditional markets, penetration into new global markets, increased product portfolio, increased product offering, new marketing sectors and increased demand for OCI’s products in the local market due to the government’s continue expenditure on infrastructure development,” a company spokesperson explained.
As a result of these increased sales, the company has put in place a strategic five year plan that is focused on tapping into new markets. OCI has also invested in technology by implementing manufacturing execution systems and upgrading its international accreditations and product approvals.
Furthermore, it expects its strongest growth to come from the GCC due to the expansion of infrastructure projects, especially with so much emphasis being paid to electrical and power projects.
“The demand for electricity will continue worldwide and such demand will translate into further demand for electricity power cables. We also expect private and public investment programmes to continue in the region,” the spokesman said.