CAIRO: Egypt’s El Sewedy Cables reported a 53 percent jump in second-quarter net profit on Monday after it took business from rivals weakened by the global economic slowdown.
Sewedy, the Arab world’s biggest maker by market value of cables used in power transmission and telecoms, said net profit rose to LE 270.1 million ($47.4 million) from LE 176.5 million in the same quarter of 2009.
A Reuters poll of three analysts had forecast second-quarter net profit of LE 201.3 million on average. Estimates ranged from LE 185 million to LE 218.8 million.
Sewedy’s chief executive had in May forecast higher profits, saying other cable makers had cut production to ride out recession in Europe, offering the Egyptian firm an opportunity to boost exports and increase profit margins in 2010.
Analyst Omar Taha at investment bank Beltone said he saw a year-on-year improvement on the back of higher sales, which rose 37 percent year-on-year in the quarter to LE 3.1 billion, beating analyst forecasts.
Sewedy Cables shares were was down 0.8 percent by 1040 GMT, while the Egypt’s benchmark index, EGX30, dipped 0.4 percent. Traders said Sewedy had fallen along with the wider market as investors focused on the weak outlook for the global economy.
The firm has production plants in Egypt and 10 other countries and exports to the Middle East and North Africa, Spain, Portugal, Eastern Europe and Brazil.