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UPDATE 1-Egypt's SODIC returns to profit, posts strong sales

Published 08/25/2010, 09:19 AM
Updated 08/25/2010, 09:24 AM

* Company says sales at 1.5 bln Egyptian pounds

* Q2 profit beats average forecast

(Recasts, updates with details, quotes)

CAIRO, Aug 25 (Reuters) - Egyptian property developer SODIC said on Wednesday it returned to profit in the first half of 2010, after it recognised revenue from some of its 4 billion Egyptian pounds ($701 million) of contracted sales.

The firm, also known as Sixth of October Development and Investment Company, made a net profit of 51 million pounds in the first six months of 2010, compared to a previously-stated loss of 20.8 million a year earlier.

"We are finally reaping the results of our strong performance over the last few years demonstrated by unrecognized contracted sales," Managing Director Maher Maksoud said in a statement.

Many homebuyers in Egypt purchase houses before they are built, which can take as much as five years after they are sold.

SODIC, Egypt's fourth biggest developer by market value, said it made about 1.5 billion pounds worth of sales so far this year.

The firm posted a first quarter net loss of 10.9 million pounds, implying a second quarter profit of 61.6 million pounds according to Reuters calculations, ahead of an average estimate of 33.3 million pounds given by four analysts.

The firm sells mostly high-end property on the outskirts of Cairo and aims for commercial leasing to bring in 400 million pounds a year by 2014.

Shares in SODIC closed down 1.3 percent before the results were released, while the main index fell 1.6 percent. ($1=5.704 Egyptian Pound) (Reporting by Dina Zayed; Editing by Jon Loades-Carter)

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