Zamil Industrial has released its financial statement for 2011, with mixed results.

While consolidation revenue increased 18% over all, net profits fell from US$9.6 million for $16.4, representing a 41.4% decrease YOY.

Earnings per share dropped to $0.69 from $0.94  in the same period in 2010.

“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,” read a statement from the company.

“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.”

Zamil Industry is comprised of divisions specialising in general coatings, HVAC supply and controls and has offices in Khobar, Riyadh and Bahrain.

“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.”