South Africa's biggest cement maker PPC reported a 3 percent fall in quarterly sales on Monday, citing weak demand and tough competition, sending shares almost 3 percent lower.
PPC, along with other South African builders, is struggling to grow revenue as the cash-strapped government delays rolling out a nearly 1 trillion rand ($61 billion) infrastructure investment package.
The Johannesburg-based company, which is in the process of buying ready-mix concrete firm 3Q Mahuma Concrete, said sales fell 3 percent in the three months to the end of December. It gave no figures.
Shares in PPC were down 4.76 percent at 12.80 rand at 1135 GMT, on course for their biggest daily percentage fall in six weeks.
PPC said selling prices of the building material fell 4 percent in the quarter with both its mainstay South African and cross-border businesses posting sales decreases.
The company has set its sights on the rest of Africa in an effort to offset slowing demand at home but a collapse in commodity prices has hit economic growth in markets such as Botswana, Zimbabwe and Rwanda.
PPC is building factories in Ethiopia and the Democratic Republic of Congo in a bid to generate 40 percent of its sales outside its home market by 2017.
- Reuters
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