Egypt's OCI Q2 net falls 28 pct

Egypt's Orascom Construction Industries reported a 28 percent drop in net income for the second quarter, in line with analyst forecasts, pulled lower by start-up costs at its Algerian and U.S. fertiliser plants.

Net income fell to $119.4 million from $165.2 million a year earlier, Egypt's biggest listed company said in a statement, which also blamed a higher effective tax rate because of a bigger contribution to earnings from its European operations.

OCI, which announced a $1.4 billion fertiliser investment in the United States late on Wednesday, said droughts in that country had reduced yields, making it necessary for farmers to increase acreage.

"We expect strong demand for fertilizer products in the upcoming harvesting season and we expect prices to remain firm for the remainder part of the year," Chairman Nassef Sawiris said in a statement on Thursday.