Egyptian sanitary ware and ceramics maker Lecico posted a decline in second-quarter revenue and net profit on Thursday, hit by costs from a fire at one of its export warehouses.
Lecico exports a third of its sanitary ware including toilets and sinks and has a significant presence in Britain and France. It said continued weakness of the euro and sterling also lowered revenue.
The firm posted net profit of LE 25.7 million for the second quarter of 2010, a 15 percent decline from a year earlier. Revenue was LE 255.7 million for the quarter, a drop of 6 percent.
The fire caused damage worth LE 70 million, the firm said in June.
"It will take us some time to rebuild the ceramic stock lost in the fire and accordingly our flexibility to respond to sudden demand shifts," Chairman Gilbert Gargour said in a statement.
The company said an increase in energy prices for non energy-intensive industries in Egypt from July 1 would raise Lecico’s costs and it would increase those higher costs and currency fluctuations.
It said it was concerned about potential overcapacity with new entrants into the Egyptian ceramics market, but added that it expected to see growth in export volumes to the Middle East and Europe from the third quarter onwards.
