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Saudi Steel Pipe profit drops 42%

Saudi Steel Pipe has said its net income for the second quarter fell to SR12.38m, compared with SR21.34m recorded in the same quarter a year earlier, despite a rise in sales, Saudi Gazette has reported. The company blamed the low margin on the export projects sales and an increase in raw material price for the decline in its quarterly profits. Total sales for the quarter rose by 22% at SR187m from SR153m a year ago. Net income for the first six months of this year also fell to SR30.7m, compared with SR42.35m in the first half of 2011.