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Egypt's Lecico says Q2 net profit drops 59 per cent Ceramics firm feels the pain of labour unrest, as revenues and profit margins slip year-on-year and month-on-month
Egyptian ceramics firm Lecico has reported net profit of LE5.1 million (US$855,597) in the second quarter of 2011, a 59 per cent drop from the first quarter 2011 when it reached LE12.5 million. Year on year, net profit declined 80 per cent from the second quarter of 2010 as revenue fell 2 per cent to reach LE249.7 million, with production volume dropping 7 per cent to 5.7 million square metres. The margin on earnings before interest and tax slipped 8.1 percentage points to 11.7 per cent in 2Q2011, the company said in a statement. It reached 13.8 per cent in 1Q2011. Lecico was among the many Egyptian firms hit by labour unrest after the uprising that ousted former president Hosni Mubarak. Demonstrations were halted in February, when the firm agreed to what it called a "significant" pay rise for workers, only to restart in late July. The latest wave of strike lasted for nine days in the firms biggest plant compound in Khorshid, Alexandria, but ended on 4 August. The tile maker, which has significant sales in Britain and other European markets, said a new tiles plant it is building near Alexandria should bring its tile production in August back to previous levels.
