Al Yamamah Steel Industries Co. expects to see lower revenues in the coming fiscal year, due to the ongoing slowdown in the construction industry, the firm said in its board report for the fiscal year ending September 2017.
The company did not specify the size of the decline anticipated and its impact on profit margins.
Growth is expected to remain weak in the construction and projects sector, due to spending cuts, fees to be imposed on expatriate workers and their dependents, as well as value-added tax (VAT) to be introduced from next month.
Al Yamamah Steel plans to replace 30 percent of its expatriate work force with national workers in order to improve salaries and organize working hours, the report said.
The firm reported a 45 percent drop in net profit to SAR 100.2 million for fiscal year 2017, compared to last year’s net profit of SAR 181.5 million.
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