The euro hit its lowest point
since 2006 on Monday before rallying slightly last week.
Euro-denominated sales account for some 15 percent of the Egyptian
firm’s total sales”
The declining euro was
unexpected, the percentage was definitely unexpected,” the firm’s
investor relations manager, Haitham Moneim, said .
What we are renegotiating now
is some sort of better prices,” he said, adding he expected the first
changes to come into effect in the third quarter of this year .
Oriental Weavers exports over
half of its goods to more than 100 countries, with about 20 percent of
its sales coming from Europe. It also controls 85 percent of Egypt’s
carpet industry .
Haitham said he expected that
clients such as Swedish furniture retailer IKEA would be open to
adjusting prices after the euro shed over 15 percent of its value this
year, and did not think higher prices would push importers to order
fewer carpets .
I think it (order volumes)
will be based on demand in general, not only on the euro,” he said. “I
think we have a favourable position to negotiate.” .
Date:6/15/2010
Source:Reuters