Egyptian ceramics maker Lecico said fourth-quarter net profit tumbled on weaker European demand and higher provisions, and warned 2011 could also be difficult. "I believe we should expect continued weakness in 2011 with European demand slower and Egyptian sales probably very weak until we see political progress," Lecico said in a statement. Much of Egypt's economy ground to a halt after the political protests that ousted President Hosni Mubarak erupted on January 25, and has been only slowly returning to normality. Fourth-quarter consolidated and unaudited net profit fell 61 percent to 11.1 million pounds on weaker demand in its European markets, and additional provisions and finance charges of 11.2 million pounds, it said in a statement. Lecico said it took a 7.5 million pound provision for claims related to a warehouse fire in June. Unaudited consolidated net profit for 2010 dropped 14.3 percent to 94.4 million pounds, and net revenue fell 3.7 percent to 1.02 billion, the statement said. Lecico exports more than half its sanitary ware production and has a significant presence in Britain and other European markets. Most of its exports are branded under the Lecico name, although it also produces for other European brands. The board is also seeking regulatory and shareholder approval to issue one share for every three existing shares, the firm said.
