Net profit at Egypt's Misr Cement Qena, which has been boosting capacity in southern Egypt, rose 14.2 percent in the first half of 2010, the stock exchange said on Tuesday. Profit rose to LE 219.6 million ($38.6 million) from LE 192.3 million in the first half of 2009. This implies a second-quarter profit of LE 104 million, down from LE 115.4 million in the first quarter, according to Reuters calculations. Misr Cement Qena agreed on Monday to buy a stake in a new cement company and in May formed a joint venture with ASEC Cement, a unit of private-equity firm Citadel Capital, to make ready-mix concrete. Misr Cement Qena and both of the new companies are based in southern Egypt. Two government stimulus packages, spent mainly on infrastructure, and growing demand for housing helped boost cement consumption in 2009 by 25 percent. This year, however, a 5 percent sales tax and a rise in electricity costs could crimp demand. "Growth in demand is generally slowing down from the first quarter and from last year," Malak Youssef of EFG-Hermes said. Another cement maker, Alexandria Cement, said on Tuesday first-half net profit rose 13 percent, though analysts said the increase was due to its takeover of cement maker Beni Suef Cement, financed by a capital increase.
