Poor bottom line performance for Al-Ezz Steel in FY01
Al-Ezz Steel Rebars (ESR) Company, Egyptian producer of steel reinforcement bars, incurred 40.29 million Egyptian pound ($8.67 million) net losses during the financial year 2001, which ended December 31. This compares to the previous FY00, when the company realized net profits of EP16.46 million.
In FY01, ESR’s sales increased by five percent to EP1.07 billion, up from the EP1.02 billion revenues achieved in the previous year. This trend was offset by substantial foreign exchange losses of EP34 million, more than double the FX losses incurred during the previous year. At the same time, ESR’s investment losses increased nearly eightfold—rising from four million EP in FY00 to EP31 million this past year.
ESR dominates the steel re-bars market with a 70 percent market share. The company’s plant, located in Sadat City, produces up to 101 million tons of deformed steel rebars, wire mesh and plain steel coils annually. — (menareport.com)
© 2002 Mena Report (www.menareport.com)