El Sewedy Q2 net income more than doubles
Cairo, September 4, 2013
Egypt's El Sewedy Electric, the Arab world's biggest listed cable maker, said its second quarter net income surged 159 percent year-on-year as wire and cable revenue rose.
Consolidated net income after minority interests leapt to 82 million Egyptian pounds ($11.7 million) from 32 million pounds in the second quarter of 2012.
A one-off provision after the closure of Sewedy's Syrian factory was compensated for in part by higher volumes in the wire and cables business, especially in Algeria and Saudi Arabia.
Revenue increased by 12 percent to 4.1 billion pounds, of which the wire and cable segment accounted for 3.1 billion.
A note by Naeem Brokerage said wire and cables revenue was also boosted by a weaker Egyptian pound.
El Sewedy said it incurred a provision of 95 million pounds in the second quarter related to its Syrian cables, transformers and plastics business.
"El Sewedy Electric has discontinued all operations in Syria given the ongoing political and economic uncertainties that have plagued the country," it said in a statement accompanying the results. - Reuters