Profits up at Pilkington target

02 November 2001

Interim profits rose by 65 per cent year-on-year at Egyptian Glass Company (EGC), for which Pilkingtonof the UK has tabled a bid, figures released by the disclosure department of the Cairo & Alexandria Stock Exchanges show.

The company made a net profit of £E 15.2 million ($3.9 million at the end-June exchange rate) in the first half of 2001, on turnover of £E 70.1 million ($18 million). EGC started commercial production at the end of 1998, and managed to turn in a small profit in its first full year of operations. It has managed to secure a dominant share of the local market, and is now looking to penetrate regional markets.

Pilkington, which already holds a 10 per cent stake and has provided its float glass process for EGC's 10 Ramadan City plant, has offered to buy the remaining 90 per cent of the company's 1.5 million shares for £E 105 ($25) a share. Selling offers were to be accepted up to 8 November (MEED 2:11:01).

The first-half results give EGC earnings per share of £E 10.12 ($2.60). This equates to an annualised price:earnings ratio of 5.2, based on the Pilkington offer.

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