GCC corporate earnings dip 7% to $12.8bn in Q2 - Arab News

GCC corporate earnings reached $12.8 billion, a decrease of seven percent in the second quarter of 2011 as compared to the same period last year, according to a report by Kuwait Financial Centre (Markaz).

The total earnings reached $12.8 billion were less than the profits posted during the previous quarter (Q1, 2011) by 7 percent. In H1,2011, the GCC corporate earnings had grown to $26.5 billion, an upswing of 5 percent compared to $25.3 billion H1, 2010.

Citing the possible reasons behind the decline, Markaz report suggested that the corporate earnings declined due to weak performance by the telecom sector in the region. However, it added, banks and commodity companies continued to perform strongly. "The region's continued dominance as a petrochemical hub, global recovery, and spikes in commodity prices supported the performance of companies across the region," the report said.

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