Titan Group reported a challenging set of 3Q17 results, as the company grappled with extreme weather at its US operations, as well as a restructuring of its Egyptian business. As a result, earnings were down 15.3% on 3Q16 at €72.4 million.
“Third quarter results in 2017 reflected two exceptional events,” the company said. “The negative impact of hurricane Irma in the US and the implementation of an organisational restructuring programme in Egypt.”
Despite this, the company reported earnings up 4.6% over the first nine months of the year at €214.5 million, “mostly thanks to growth in the US market,” the company said.
“In the US, the market continues to grow, despite the short-term challenges posed by the effects of hurricane Irma,” the company continued. Group earnings are up 42% in the US year to date at €138.8 million.
Elsewhere, markets remained challenging for Titan. Building activity weakened in Greece, while higher fuel prices hit profitability throughout the company’s European operations. In Egypt, lower demand for cement and a weak local currency made for difficult business conditions.
There were some positive signs in Brazil, however, where prices “edges upwards” in 3Q17, following improved economic indicators. Turkish demand remained strong – but an increase in competition and the devaluation of the local currency hit sales volumes and profitability.
Looking ahead, the US is expected to drive the company’s growth potential, as forecast demand for cement in the company’s key markets is strong. Combined with recent improvements to the company’s US operations allows “for an optimistic outlook”.
Read the article online at: https://www.worldcement.com/africa-middle-east/07112017/titan-group-reports-challenging-3q17-results/