Titan's US business continues to advance

Titan's first-half turnover improved by 7.6 per cent to EUR723.8m and EBITDA was ahead by 13.5 per cent to EUR119.5m. Following an increase in the depreciation charge of a modest 6.7 per cent, the trading profit improved by 21.4 per cent to EUR59m. After a net financial charge 6.2 per cent higher at EUR34.7m and other items, notably foreign exchange, the pretax profit dropped from EUR30.9m to EUR7.4m. At the net attributable level, the profit declined from EUR24.4m to EUR9.2m. Capital investment was reduced from EUR82m to EUR62m. Net debt at the end of June was reduced by 8.3 per cent to EUR578m to give a gearing level of 35.6 per cent.

Group deliveries of cementitous materials increased by 2.5 per cent to 8.1Mt and aggregates shipments rose by 15.9 per cent to 8Mt, while ready-mixed concrete deliveries improved by 10.3 per cent to 2.35Mm³.

The Greek and western European turnover declined by 9.1 per cent to EUR133.4m and EBITDA fell by 29.7 per cent to EUR19.70m. Greek domestic deliveries accounted for just 6.5 per cent of the group volume and 75 per cent of group’s Greek production and the amount exported was negatively affected by a port strike in Salonica. In Greece overall demand remains poor in spite of some support from public works. Pricing is also slightly weaker. 

In southeastern Europe turnover showed a 6.7 per cent recovery to EUR97m and EBITDA improved by 3.9 per cent to EUR26.2m. Cement demand across the region remains weak, capacity utilisation remains poor and competition continues to be intense, but some recovery is new being seen in Macedonia and in Kosovo.

In the United States turnover rose by 18.8 per cent to EUR372.6m and EBITDA advanced by 24 per cent to EUR52.2m. Florida continues to recover strongly and Virginia remains positive. The Florida annual stoppage was later and more substantial than usual this season and cost some US$10m, around US$6m of which should be recovered during the second half.

The eastern Mediterranean operations, of which only Egypt remains consolidated, saw turnover ease by 0.6 per cent to EUR120.2m, but EBITDA recovered from EUR10m to EUR21.4m. Both of the two coal mills for Beni Suef have now been commissioned and the single coal mill built in Alexandria should follow during the final quarter of this year. The switch to solid fuel should lead to a saving of an eventual EUR20m. Turkish joint venture traded at a high level of capacity utilisation and the net profit contribution rose from EUR1.4m to EUR2.2m in the period.