SCGC’S Board of Directors examines the results as of 31 March 2012
CONSOLIDATED NET SALES: 1,227 Million EGP (-13, 7%)
CURRENT GROSS PROFIT: 269 Million EGP (-33, 3 %)
OPERATING INCOME: 219 Million EGP (-42,5 %)
NET PROFIT AFTER Non-Controlling Interest: 141 Million EGP (-49%)
Cairo, 14th of May 2012 – At a meeting on May 14th chaired by Mr Omar Abdelaziz Mohanna, the Board of Directors of Suez Cement examined and approved the unaudited consolidated results as of 31 March, 2012
The First quarter of 2012 confirmed the rebound in the domestic grey cement demand (+ 15.4 %) which registered a new historical record. In this context, Suez Cement Group managed to reduce the pricing incentives which have been offered to cement traders since the spring of 2011 but could not match the volume demand as our plants suffered from various strikes and faced the continued development of new cement producers. The development of Export volumes which reached 6% of sales could not offset entirely the domestic share erosion.
The consolidated net sales of the Suez Cement group realized at 1.227 million EGP a gain of 15,5% vs.Q4 2011 but a drop of -13,7% vs.Q1 2011, penalized by the negative volume and price effect. Gross profit and operating Profit also showed a marked increase from Q4 2011 to respectively 269 million EGP and 219 million EGP, while remaining below same quarter of 2011 (-33,3% and -42,5% respectively). The total net profit “after non-controlling interest” amounted to 141 million EGP (-49 % vs.2011 but a gain of 89 million EGP vs.Q4).
The marked improvements from the second half of 2011 need to be consolidated in the coming quarters but the outlook is still very uncertain in the current political context and before a stable government can be established and bring renewed confidence to construction investors.