Restart Of Italcementi Egypt Operations Positive

Restart Of Italcementi Egypt Operations Positive
Published: 28 February 2011

The restart of Italcementi’s activities in Egypt after a one-month production halt is positive, says Mediobanca. The restart signals political stabilisation in the North African country. Analyst notes though that doubts on the trend in cement demand in Egypt remain. Egypt is a strategic market for Italcementi with about 17% of the group’s turnover and representing about 29% of EBITDA. Egypt’s unrest increases uncertainty on the company’s 2011 prospects. Mediobanca keeps at neutral and has target price under review.