EZZ Steel’s Net Profits Down 5% in 2011

Ezz Steel (ESRS)’s consolidated financial statement for the fiscal year of 2011 has revealed that the company has posted net profits of EGP 536.250 million, lower 5%, compared to net profits of EGP 564.544 million for the same comparable period of 2010.

During 2011, the company’s consolidated sales reached EGP 18.6 billion, compared to EGP 16.6 billion in 2010, higher 12%. In addition, the Repar sales have pushed up 7% in 2011 reaching 3.6 million tons, compared 3.4 million tons during the previous year.

Yet, the flat steel sales have went down 21% reaching one million tons, compared to 1.4 million tons in 2010.

The ESRS said that the decline of the flat steel sales by 32% was due to the political unstability in Egypt and to the establishment of a new factory which was finished in Q1 of 2011 and is currently going through operation tests.

During 2011, the ESRS’s gross profits reached EGP 2.2 billion, higher 15%, compared to gross profits of EGP 1.9 billion for the same comparable period.

Elsewhere, the ESRS’ unconsolidated financial statement has shown that the company posted profits of EGP 114 million in 2011, compared to profits of EGP 116.084 achieved during 2010.