Emaar posts lower net operating profits in till September

October 19th, 2008 - 7:57 pm ICT by IANS  

Dubai, Oct 19 (IANS) The United Arab Emirates (UAE)-based real estate giant Emaar Properties, which has major interests in India, announced Sunday that it has posted net operating profits of 12.52 billion dirhams ($3.408 billion) in the first nine months of 2008.The revenue is down from 12.727 billion dirhams ($3.465 billion) it posted in the same period last year.

The company said it took a goodwill write-off of 750 million dirhams ($204 million) from its US unit John Laing Homes.

“Although, the recent actions by the US government may result in providing support to the home builders in the US, the write-off was considered prudent in view of the current challenging times for all businesses especially the financial and real estate sector in the US,” the company said in a statement.

Though it did not give year-on-year comparative quarterly figures, it said net profit for the first nine months of 2008 stood at 4.823 billion ($1.313 billion).

Revenue for the third quarter of 2008, which ended Sep 30, stood at 4.319 billion dirhams ($1.176 billion), following revenues of 4.240 billion dirhams ($1.154 billion) it posted in the second quarter this year.

Net operating profit for the third quarter stood at 2.258 billion dirhams ($615 million) compared to 1.660 billion dirhams ($452 million) in the second quarter.

Emaar chairman Mohamed Ali Alabbar, however, said he was optimistic about the company’s performance in the Middle East and south Asia.

“We believe that the economic fundamentals in the Middle East, North Africa and south Asia region will remain sound with higher economic and population growths, resulting in domestic demand to further enable growth in the real estate sector,” he said in the Emaar statement.

The company has committed $12 billion in India along with its joint venture partner MGF.

Emaar MGF is building a series of integrated master-planned townships across a number of Indian cities such as Hyderabad, Chennai, Gurgaon and Mohali.

The company is also constructing the 2010 New Delhi Commonwealth Games village.

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