East African Portland Cement Co (EAPCC) posted an increased annual loss for the year ending 30 June 2012 due to slower sales, a major plant breakdown and labour issues.
EAPCC said it posted a loss of KES849.7m (US$9.96m), compared with a KES119.06m loss in the same period last year, after a 15 per cent drop in revenues to KES8.61bn.
The company said that production was hurt by labour unrest that caused operations to be suspended in January and a major breakdown of one of its kilns that hit production, coupled with a weakening shilling, rising power and raw material costs. Furthermore, in December and January, its workers were involved in an industrial action calling for the removal of some managers, which saw operations shutdown.
Going forward, the company said it expects its performance to improve due to falling interest rates, which is expected to lead to increased activity in the construction sector. But it added that upcoming elections could deal a blow to its recovery due to cautious investors.
