October 08, 2008

Sonasid H1 net profit up by 52% YoY

Reuters reported that Moroccan steel maker Sonasid which European steel giant Arcelor took control of last year reported a 52.5% YoY increase in January to June 2007 net profit recently.

Sonasid in a statement said that net income was AED 494.8 million Moroccan up from AED 324.5 million in the same period last year on a 20.6% increase in sales to AED 3.264 billion. Its stock was up 0.81% to AED 3,100 at Casablanca bourse recently. It said the market for steel used to reinforce concrete grew 22% in January to June 2007.

Arcelor raised its stake in Sonasid in June 2006 in a deal valuing the Moroccan company at around USD 612 million aimed at developing Sonasid in its home market and making it easier to transfer technology and expertise to its affiliate. It hopes to use Sonasid as a base for expanding in North Africa and the rest of the continent.

Sonasid which controls 80% of Morocco's market for long steel products has annual production capacity of around 1 million tonnes. Its other shareholders include SNI, the kingdom's largest private conglomerate.