A 24 percent rise in net profits was reported by Suez Cement for the first quarter of the financial year 2002, ending March 31. During that period, the company reported net income of 43.41 million Egyptian pounds ($9.3 million), versus EP35 million for the corresponding quarter the pervious year.
Over the past quarter, cement dispatches fell 3.7 percent to 907,000 tons versus 941,726 tons in the comparable period of 2001. With sales down 1.8 percent at EP151.16 million and a four percent increase in COGS (Cost of Goods Sold) to EP82.62 million, gross profit ended at EP68.32 million in the first quarter of 2002, constituting an eight percent fall from 1Q01.
Suez Cement increased its capital during the first quarter of the current year, a move that enabled settling a third of the EP1.3 billion loan, used to finance the purchase of a 65 percent stake in Torah Cement. As a result, the company managed to lower its interest expenses 35 percent, to EP25.92 million, proving to be the main driver behind Suez's bottom line growth despite unfavorable market conditions. General and administrative expenses decreased 12 percent to reach EP2.82 million.
Last year, a 25 percent stake in the company was sold to anchor investo Ciments Francais. Ciments Francais, now the largest shareholder in the company, is a unit of Italcementi Group. The company manufactures and distributes various types of cement, ready-mix concrete and concrete products. The company was established in 1977. Suez Cement has one subsidiary called Suez Bag Company. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
