Egyptian Instability Knocks Czech Textiles Firm Pegas

Czech synthetic textiles maker Pegas Nonwovens said core profit growth this year was likely to be at the lower end of its expectations due to rising polymer prices and instability in Egypt, where it is testing a new production line.

The company said on Thursday it restarted operation of the plant this week, after halting it in the middle of August as a precaution, as the security situation in Egypt improved.

It posted a 12.4 percent rise in second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) to 9.1 million euros ($12.1 million) thanks to rising prices of non-woven textiles.

The result came in below a market forecast for 10.4 million euros due to lower-than-planned production, Pegas said, without giving further details.

The company’s guidance is for full-year EBITDA growth of 5-15 percent.

Source: Reuters