Titan achieves better results in USA and Greece
Titan's first-quarter turnover improved 12.7 per cent to EUR283.8m and EBITDA declined by 23.7 per cent to EUR23.2m. The company posted a pretax profit of EUR7.6m versus a loss of EUR9.7m a year earlier, while the net attributable profit of EUR6.6m compared with a loss of EUR11m.
Net debt at the end of March, however, was up by 22 per cent to EUR660m, giving a gearing level of 42.2 per cent, compared with 38.5 per cent a year earlier.
Group cement shipments increased by four per cent to 3.5Mt, while aggregates deliveries were stable at 3.2Mt. Ready-mixed concrete deliveries improved by another 11.1 per cent to 0.9Mm³.
Improvements in Greek public works activity
Turnover in Greece and the rest of western Europe fell by two per cent to EUR65.3m, with maintained good export volumes and continued domestic Greek public works activity. However, the domestic commercial, industrial and residential market remains extremely weak. EBITDA recovered further from EUR3.9m to EUR9.4m. A slight drop in domestic prices was more than offset by the stronger dollar exchange rate.
Turnover in the rest of Southeastern Europe declined by 31.5 per cent to EUR28.1m as the winter was harsher than the previous year. EBITDA was lower by 56.7 per cent to EUR4.2m. Cement prices did show a slight improvement, but economic activity remains weak.
US capex increased
In the USA, turnover improved by 37.4 per cent to EUR130.2m and EBITDA advanced from EUR0.9m to EUR5.8m as volumes, prices and the exchange rate all improved, in spite of a weak first two months of the year.
Capital expenditure was increased to capture growth and to boost profitability, with the US economy being in its fourth year of recovery. The recovery is set to continue, with the focus being on capturing opportunities and on expanding margins.
Egypt stages recovery
Turnover in the Eastern Mediterranean area, which now effectively just means Egypt, staged a 21.9 per cent recovery to EUR60.2m, but EBITDA fell by a further 75.5 per cent to EUR3.9m. Cement sales prices were slightly higher in Egyptian pound terms and rose by rather more in euro terms in the period.
The first Beni Suef solid fuel went on-stream during the first quarter to help overcome the disruption of gas supplies. Some clinker had to be imported from Titan’s parent in Greece. The second solid fuel production line at Beni Suef is meant to come on-stream during the third quarter of this year, as should one line at Alexandria.
The equity accounted Turkish joint venture suffered from a heavy winter, leading to lower volumes than a year ago.
