Egypt’s El Ezz Dekhalia Steel Q2 net profit up 16%

Net profit at Egypt's El Ezz Dekheila Steel (EZDK) rose 16% in the second quarter of 2012 as costs were reduced to combat a fall in sales of almost half those of last year.

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The steelmaker made E£303.8 million ($49.8 million) for the period, up from E£261.58 million.

Top-line revenue fell 48% to E£1.99 billion from E3.87 billion, according to a combination of its August 21 first-half statement and previous data on its first-quarter performance.

The first-half statement showed net profits rising 16% to E£439 million from E£378 million in the same period last year.

This is despite a 13.9% fall in gross profit and a fall in the ratio of gross profit to sales. Other costs fell overall to produce the higher after-tax profit and a 16% rise in earnings per share.

EZDK makes rebar, rod and hot rolled coil from its Alexandria facility. It is majority owned by Ezz Steel.

EZDK shares were priced at E£549 at 9.48am Cairo time on August 22. They have risen 39.2% since the start of the year.