Titan reports positive performance, driven by US market

Thanks to a strong performance in the US, the Titan Group has recorded an increase in sales and profitability in the nine months ending 30 September 2015. Consolidated turnover was €1029.5 million, up 18.9% from the same period of 2014. EBITDA was up 12.6% at €165.2 million, while net profit was €36.2 million, up from €30.5 million.

In 3Q15, group turnover increased 17.1% to €356.7 million. EBITDA was also up, at €59.9 million, while net profit after tax was negatively impacted by foreign currency translation effects, reducing from €27.6 million in 3Q14 to €12 million.
In terms of geographic regions, Greece’s construction industry continued to shrink, bringing turnover down for the Greece and Western Europe region despite the fact that export volumes were maintained at satisfactory levels. Construction activity in Southeastern Europe did not record much change; turnover declined by 2.8% and EBITDA fell 12.5%.

Meanwhile, turnover in the US was up 43.7% in the first nine months of the year and EBITDA more than doubled to €71.1 million. In Egypt, cement demand recorded a slight increase, and the operation of the solid fuel line at Beni Suef helped to recover production capacity, resulting in a 22% increase in turnover. However, the high cost of fuel and softening cement prices led to a decline in EBITDA from €32.5 million to €16.1 million for the first nine months.

Capital expenditure for the Group in the nine months of 2015, excluding acquisitions and intangibles, reached €127m, significantly above the levels of recent years and higher than depreciation. The increase is mainly attributable to investments in activity expansion in the US and the securing of fuel sufficiency in Egypt.

Outlook

Titan expects improved operating results for the full year, driven by growth in the US. In the nine months of 2015, Group region US represents 48% of Group sales and 43% of EBITDA.

Adapted from press release by Katherine Guenioui

Read the article online at: https://www.worldcement.com/africa-middle-east/09112015/titan-reports-positive-performance-thanks-to-us-growth-940/