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English news

27-Oct-2016

Eastern Co.’s raw material reserves halve on FX issues; at risk of halting production

Eastern Company (EAST.CA) announced that its strategic raw material reserves have halved to 12 months from its typical inventory of 24 months due to dollar shortage. The company added that if the situation persists, it will be forced to halt production and sales. Also, Eastern Co. has been facing issues collecting fees from Phillip Morris, which stopped paying fees in dollars in return for its production. Eastern Co. requires a total of c.USD30mn per month to purchase the raw materials needed for its operations. (Bloomberg)    Eastern Company: EGP210.96 as of 26 October 2016, Rating: Buy, FV: EGP334.00 per share, MCap: USD1,188mn, EAST EY / EAST.CA

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