Suez Cement hit by declining prices, Egypt
Suez Cement of Egypt reports that during the first nine months of 2011 domestic cement demand decreased by 4.3% compared to the same period of 2010 while the sales of Suez Cement group of Companies decreased by 11.6 % over the same period.
During the third quarter of 2011 the cement market suffered from the ongoing weak demand, capacity additions mainly through the new cement producers, fuel cost increases and declining prices. As a result of this the consolidated net sales of the Suez Cement group realised at EGP1.002m EGP (-22% vs Q3 2010), penalised by the negative volume and price effect.
Gross profit and operating profit amounted to EGP195m (-44 % versus 3Q10) and EGP 155m (-55% vs 3Q10), respectively. The total net profit "after non-controlling interest" amounted to EGP104m (-59 % vs 3Q10).
Over the first nine months of 2011 the consolidated net sales reached to EGP3758m (-19.8% vs the same period of 2010). Gross profit and operating profit amounted respectively to EGP946m and EGP810m while the net profit "after non-controlling interest" amounted to EGP517m (-43% vs the same period of 2010).
Meanwhile, the company announced that it has allocated EGP50m on environmentally-friendly investments, which includes using alternative fuel and new filters to reduce emissions. Published under Cement News
