Titan performs strongly in the USA

Titan's turnover improved by 18.9 per cent to EUR1029.5m in the first nine months of 2015 and EBITDA was up by 12.6 per cent to EUR165.2m, though in the third quarter EBITDA was ahead by just 3.8 per cent, reflecting the weakness in Greece.

The trading profit for the nine months was 17.9 per cent higher at EUR80.5m and, after a 14.6 per cent increase in net financial charges and a positive contribution from associates of EUR3.8m as well as a reduced foreign exchange gain, the pre-tax profit was reduced by 11 per cent to EUR42.2m. The net attributable profit emerged 18.7 per cent higher at EUR36.2m thanks to lower tax and minorities payments.

Net debt at the end of September was 20.1 per cent higher than a year earlier at EUR650m. Capital expenditure during the nine months was increased from EUR47.5m to EUR127m.

Shipments of cementitious materials in the nine months were stable at 12.2Mt, while aggregates sales, which are primarily in the US, declined by around six per cent to 10.2Mt. Deliveries of ready-mixed concrete improved by 9.6 per cent to 3.19Mm³.

Greece and Western European
The Greek and Western European turnover came off by 7.1 per cent to EUR198.6m, or 19.3 per cent of the group total while the EBITDA improved by 7.9 per cent to EUR31.4m, or 19 per cent of the group total. Domestic deliveries dropped sharply in the third quarter because of the difficult financial situation in Greece, exports were strong and had the benefit of a stronger dollar, in which most of the exports are priced. Over 75 per cent of the Greek production is now exported.

Southeastern Europe
Southeastern Europe represented 15.1 per cent of turnover and 28.2 per cent of EBITDA. The turnover declined by 2.9 per cent to EUR155.5m and the EBITDA came off by 12.5 per cent to EUR46.6m and is the second largest profit earner in the group. Domestic cement deliveries across the region increased during the second and third quarters and have now made up the weather related volume losses of the first quarter. Cement production is stable at unsatisfactory levels and prices have weakened.

US
The US turnover rose by a further 43.7 per cent to EUR496.5m, or 48.2 per cent of the group total, boosted by the stronger dollar. The EBITDA increased by 81 per cent in dollar terms and more than doubled on conversion to EUR71.7m, which represents 43.4 per cent of the group total. Florida, Titan’s biggest US market again accounted for the largest share of the advance. Successful price increases were again introduced in all Titan’s geographical areas and further increases have been announced for the beginning of 2016. Capital expenditure has been raised substantially and amounted to EUR71m for the year to date.

Eastern Mediterranean region
In the Eastern Mediterranean region, where just Egypt is fully consolidated, turnover recovered by 22.0 per cent to EUR178.9m, in local currency the advance was a more limited 6 per cent, and represented 17.4 per cent of the group total. The EBITDA fell by a further 50.5 per cent to EUR16.1m and its share of the group’s profit dropped from 22.2 per cent of the group total to just 9.7 per cent.

Still suffering from a high cost fuel mix, but the first coal mill is now operating at Beni Suef and the second one will follow during the first quarter of next year and the coal mill for Alexandria is to follow during the last quarter of next year. Pricing is weak and Titan is concentrating on prices rather than on volumes. The Turkish joint venture Adocim has performed well to date.