In January – June 2013, Titan saw its turnover rise by 4.4% y/y to €571.9 million as positive results in the US and Eastern-Mediterranean markets helped to offset the continuing decline in Greece. The Group has revealed that it posted a net loss of €21.8 million after tax and minority interests, compared to a net profit of €8.3 million in 1H12. EBITDA was also down on last year’s results, dropping from €112.1 million to €92.2 million.
Titan’s results felt the impact of a decline in local currency values, particularly the Egyptian pound. At stable exchange rates EBITDA would have suffered a 12.6% y/y decrease as opposed to 17.8%, and turnover would be up 8%. The Group also points out that no revenue was generated from the sale of carbon emissions rights in 1H13.
By the end of June 2013, Titan’s debt had been reduced to €586 million, €10 million less than at the start of 2013 and €54 million less than the end of June 2012. The generation of €55 million in free cash flow helped to lower the company’s debt levels.
An improved housing market in the US, especially in Florida, boosted demand for building materials, leading to a turnover of €193.4 million in 1H13, up 9.9% y/y. EBITDA increased by a staggering 139.2% y/y to €10.3 million. The Group’s subsidiary Separation Technologies LLC also saw an increase in turnover and profitability during the first six months of the year.
In Southeastern Europe, turnover fell by 2.3% y/y, while EBITDA dropped by 25.3% y/y to €23.2 million as demand levels remained low.
In the Eastern-Mediterranean region, turnover grew by 4.1% y/y to €157.8 million and EBITDA was up 2.3% y/y to €49.6 million. At stable exchange rates, EBITDA and turnover would have increased by 14.3% and 15.5%, respectively. In Turkey, export levels improved and construction activity in the public and private sectors picked up. Despite the turmoil in Egypt, cement demand remained fairly constant.
Demand for cement continued to decline in Greece as construction activity remains low. Cement sales on the Greek market account for around a sixth of Titan’s production capacity, however a rise in exports helped turnover to increase by 2.4% y/y in Greece and Western Europe. EBITDA came in at €9.1 million, down 67.9% y/y.
In April – June 2013, Titan’s turnover reached €329 million, up 2% y/y compared to €322.5 million in 2Q12. This is the fifth consecutive quarter in which the Group’s turnover has improved. Net profit fell from €27.8 million in 2Q12 to €5.3 million in the same period this year. EBITDA also declined, dropping 12.6% y/y to €67.9 million.
Titan’s parent company, Titan S.A. saw turnover grow 6.7% y/y to €118.9 million as export levels increased. However, EBITDA was down 75% y/y to €7.5 million, leading to a net loss of €22.3 million during the period. This compares to a net profit of €2 million in 1H12.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/02082013/titan_1h13_results_87/