CAIRO: Egyptian ceramics company Lecico's net profit tumbled 54 percent in a turbulent first quarter marked by political upheaval and an economic slump. Chief executive Gilbert Gargour said on Thursday the weeks of upheaval that ended president Hosni Mubarak's three-decade rule on Feb. 11 had hit the company's production and sales. Net income fell to LE 12.5 million ($2.1 million), on revenue down 18 percent to LE 88 million, driven by a 19 percent decrease in volumes to 4.9 million square meters. The margin on first-quarter earnings before interest and tax slipped to 13.8 percent from 17.6 percent. Beltone analysts said the results were "bad, as expected." Gargour also blamed lower consumer confidence and higher costs in Egypt and lost sales in Libya, a major regional market for the company that has descended into civil war. "In the last month we have seen a relative recovery in our local market for sanitary and for tile," said Gargour. "The markets have begun to stabilize and failing further upheavals we are confident that business will recover in Egypt." He cited a renewed commitment to public housing projects by the army-backed interim government. Lecico shares have fallen 8 percent this year, outperforming a 29 percent drop by Egypt's main EGX 30 index.
