Egypt's Suez Cement Group said on Thursday its nine-month net profit fell 8.5 percent to 906.7 million Egyptian pounds ($157 million), with sales down despite rising grey cement consumption.   

Suez, Egypt's largest listed cement company and a subsidiary of Italcementi, said consolidated net sales in the period fell 2.1 percent to 4.69 billion pounds, while operating income slipped 10 percent to 1.256 billion pounds.

Egypt's grey cement consumption grew 2.8 percent in the first nine months of 2010, the company said, without giving a reason for the decline in its earnings.

The drop was greater than the 1.9 percent fall in first-half net profit that it reported in August.

Government stimulus spending on infrastructure and growing demand for housing helped fuel demand for cement last year, but analysts have said they expect new policies such as a 5 percent sales tax and a rise in electricity costs to cool demand.   

Suez Cement shares have fallen 10 percent this year compared with a 7.8 percent gain by Egypt's benchmark index. The stock closed at 39.82 pounds on the Egyptian Exchange on Wednesday. - Reuters