UPDATE 1-Egypt's Lecico Q3 boosted by forex gains

By Shaimaa Fayed CAIRO, Nov 4 (Reuters) - Egyptian ceramics company Lecico said third-quarter net profit rose as currency gains helped offset lower sales as tile output was hit by maintenance shutdowns. Net profit in the period was 29.5 million Egyptian pounds ($5.4 million), a 13 percent rise on the same period a year earlier, it said. Lecico, whose company has a significant presence in Britain and France, suffered a sharp decline in profits earlier in the year in part due to falling European currencies. "We've turned a corner from what was a very weak end of last year and a slow start to this year, as with all companies, because of the impact of the financial crisis on markets in Europe and globally," said Lecico's Deputy CEO Taher Gargour. Net sales fell to 273.2 million pounds this quarter, compared with 295.6 million in the same period last year, driven by a reduction in tile production due to now-completed equipment maintenance, the firm said. The firm made 26.2 million pounds in the third quarter of 2008, when currency devaluations in its key export markets hit Lecico's bottom line. However, Lecico, which exports a third of its sanitary ware products including toilets and sinks, said that demand from export markets was strong in the quarter. Currency differentials also improved significantly in the quarter. "All this paints quite a positive picture for 2010 from the demand side," he said, although an expected increase in energy prices would add to operational costs, he added. Gargour said the firm would seek to increase efficiency and raise prices, "which is not such an easy task given the current global environment". The company's was trading more than 1 percent higher at 15.9 pounds by 1044 GMT. ($1 = 5.469 Egyptian pounds) (Writing by Shaimaa Fayed; editing by Simon Jessop) Keywords: LECICO RESULTS/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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