Titan recovers in southern Europe and Florida

Titan's first quarter turnover improved seven per cent to EUR251.8m, under the new accounting rules that ignore the turnover of joint ventures, and the EBITDA staged a 30.9 per cent recovery to EUR30.5m. The pre-tax loss was reduced by 58.7 per cent to EUR9.7m while the net attributable loss declined by 59.4 per cent to EUR11m. 

Net debt at the end of March, however, was down by 9.2 per cent to EUR541m, giving a gearing level of 38.5 per cent, compared with 41.6 per cent a year earlier.  Group cement shipments increased by two per cent to 3.6Mt, while aggregates deliveries were 17 per cent higher at 3.2Mt. Ready-mixed concrete deliveries improved by another two per cent to 0.81m m³.

Greece & western Europe
Turnover in Greece and the rest of western Europe improved by 30.6 per cent to EUR66.6m, thanks to continued growth in export volumes, and domestic Greek volume recovery, helped along by kinder weather and four large public sector road contracts.  Domestic deliveries improved by 27 per cent from a very low base and prices remain under pressure and the residential market remains extremely weak.  Again, there was no profit from the sale of any emission rights. The EBITDA recovered from to a negative EUR2.8m to a EUR4m profit.  Bad debt charges were increased by EUR1.5m to stand at EUR17m, or 27 per cent of trade receivables.    

Southeastern Europe
Turnover in the rest of South Eastern Europe recovered by 27.7 per cent to EUR41.1m as the kinder winter weather showed a further improvement on recent years and leading to a jump in EBITDA from EUR2.9m to EUR9.7m. This improvement was more related to the milder weather than any underlying improvement in demand, with the advance being most notable in Bulgaria, Kosovo and Macedonia.  Cement pricing also showed some recovery, but economic growth in the area remains somewhat sluggish.  

USA
In the USA, turnover improved by 6.3 per cent to EUR94.7m and the EBITDA advanced by 80.0 per cent to EUR0.9m, in spite of the front loading of maintenance. Cement demand in Florida grew by 23 per cent in the period, but bad weather led to a reduction in demand in the mid-Atlantic states. Prices were increased by US$7 in Florida in January, with a further price increase of US$8 being planned for July.  In the mid-Atlantic area, prices were increased in April. Ready-mixed concrete and aggregates prices have also been raised. The current outlook is for cement volumes to grow by close to eight per cent this year and by the region of 10 per cent both in 2015 and 2016. 

Eastern Mediterranean
Turnover in the Eastern Mediterranean area, which now effectively just means Egypt, declined by 21.3 per cent to EUR49.4m, reflecting gas shortages limiting production and the continued weakness of the Egyptian pound. The EBITDA fell by 29.3 per cent to EUR15.9m. The reduced gas supplies led to a 24 per cent volume reduction and Titan is currently awaiting the issue of a permit to allow it build the necessary equipment to burn coal.  Once approved, the equipment will take some nine months to install. In the meantime, Titan may well decide to import some clinker from Greece, like it did last year. The now equity accounted Turkish joint venture had a good first quarter, benefiting from increasing demand and favourable weather.