Suez Cement posts 8.4% first quarter fall
Egypt’s largest listed cement firm, Suez Cement, posted an 8.4 per cent fall in first-quarter net profit but net consolidated sales rose, boosted by a buoyant construction sector.
The firm, a subsidiary of Italcementi, said on Thursday it made a net profit of E£364.7m (US$65.1m) on a 2.3 per cent rise in consolidated net sales to E£1.67bn.
Government stimulus spending on infrastructure and growing demand for housing had helped fuel a 25 per cent rise in cement demand in Egypt in 2009 and the construction sector remains active.
"Construction is speeding up and the demand is still there, even though there might be a slowdown now because steel prices have hiked," said analyst Radwa Abou El Naga at Prime Research.
Suez owns Helwan Cement and Torah Portland Cement and several smaller related firms.
The group told Reuters in March it was considering bidding for a new cement licence or buying another producer.
Source: Reuters
Published under Cement News
