Kenya's Portland Cement warns of 25 pct profit drop

Byrebecca3360

Updated Fri, 16 May 2014 17:01:59 GMT

East African Portland Cement Co Ltd expects profit for its full year through June to fall by more than 25 percent, it said on Friday.

Portland, which is the third-largest cement firm in Kenya, blamed rising competition in the sector and high staff costs for the forecast.

"These challenges have had an adverse effect on sales revenues whilst staff and other unavoidable costs were incurred," Portland said in a statement.

The company, which made a pretax profit of $16 million last year, said tough economic conditions in the region, including the depreciation of the Kenyan shilling, would also contribute to the projected lower earnings.