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Mediterranean giants report Q3 and 9M results

World Cement,

Titan Cement and Cimpor have issued statements relating to their financial results for the first nine months and third quarter of 2009.

Titan Cement reported net profit fell 36.5% in the first nine months of the year to €103.7 million. Slower construction activity in the US, Greece and in Southeastern Europe has been blamed for the decline, which also saw revenue fall 11.6% to €1.04 billion and EBITDA down 11.4% to €258 million.

Q3 EBITDA showed a marginal decline of 2.1% y/y thanks to cost containment initiatives at all levels across the Group and the positive effect of lower fuel prices, compared to the same period last year.

The Group continues work on the new cement plant in Albania, and is expanding its presence in the region in anticipation of the plant’s start-up early next year. Commissioning of the Beni Suef plant in Egypt began last month, and the new line will help to meet growing demand in the country, which has been Titan’s one hotspot this year so far. EBITDA in the Eastern Mediterranean region (incorporating Egypt) grew 91% in the first nine months to €72.5 million.

The Group expects the trends that have prevailed this year so far to continue for the remainder of the year.

Meanwhile, the Group has been ranked no.1 in Europe and 8th in the world for 2009 in the ‘Top Company for Leaders’ study conducted by Hewitt Associates in partnership with The RBL Group and Fortune magazine.

Cimpor has proved resilient to the financial crisis thus far, and has produced strong 9M and Q3 results confirming the same. Although declines were felt in the Portuguese and Spanish markets, Cimpor benefits from strategic positioning in emerging markets such as Egypt, South Africa and China.

Turnover was down by just 0.3% y/y, while EBITDA rose 2.9% to €457 million thanks to strong performances from the Group’s Egyptian, Brazilian, South African and Indian business areas. Together, those four countries accounted for a €67 million increase in operating cash flow.

The Mediterranean countries of Spain, Portugal and Turkey have not performed well this year, although Q3 showed a slowing decline in Spain and some improvement in Turkey. The Group has not provided an indication of expectations for the remainder of the year.

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