CAIRO, July 3 (Reuters) - An Egyptian appeals court upheld a one-year prison sentence against Prime Minister Hisham Kandil on Wednesday and ordered him to be removed from his post, a judicial source said.

Kandil was handed the sentence in April for failing to implement a court ruling to renationalise a textile company sold off by the ousted former Hosni Mubarak administration.

The appeals court ruling came on the day when the army intervened to sideline elected Islamist President Mohamed Mursi and put in place a new political transition. (Reporting by Asma Alsharif; Writing by Paul Taylor)