CAIRO: Egyptian group El Sewedy Cables expects second-quarter net profit to grow 32 percent year-on-year, mainly boosted by sales to European markets, its chief executive said on Wednesday.
"We expect second-quarter net profit to be within the range of first quarter growth," Ahmed El Sewedy told a conference call, adding he expected net profit to rise 25 percent in 2010 as sales and exports to Europe pick up.
"Europe is one of our main targets," he said. "With this drop in Europe’s economy, a lot of (European) cable companies will suffer and squeeze production. So it will be an opportunity to increase our production and exports to Europe and improve our margins for this year and the next."
The biggest Arab cable maker by market value said in mid-May first-quarter net profit before minority interest rose 32 percent to LE 266 million ($47 million) after it was able to increase revenue faster than costs.
On Tuesday, the company said it was negotiating for a 50-megwatt wind power project in Pakistan, in a bid to open a new market in Asia.
Sewedy said in mid-May it would sign a $100 million contract with Mozambique’s state electricity utility by the end of the month to supply and install overhead cables, underground cables and electrical accessories in two cities in Mozambique.
Sewedy has production plants in Egypt, Ethiopia, Nigeria, Yemen, Saudi Arabia, Syria, Algeria, Ghana, Zambia, Qatar and Libya and exports to markets in the Middle East North Africa region, Spain, Portugal, eastern Europe and Brazil.