Titan Group post improved Q3 figures

4467 Titan Group, the Greece headquartered global building materials market supplier, has posted improved third quarter performance figures compared to the same three months of 2017. Group turnover in the third quarter increased by 5%, reaching €389.4 million. Earnings before Interest, Depreciation and Amortisation (EBITDA) increased by 3.2% to €74.7 million. Net profit after minority interests and the provision for taxes increased by 32.5% to €25.4 million, compared to €19.2 million in the third quarter of 2017.

Titan Group says the outlook for the U.S. construction sector remains positive, citing The 4353 Portland Cement Association (PCA), who recently confirmed its estimates for an increase in building materials demand over the period 2018-2023. A Group statement said: “TITAN Group is well positioned to take advantage of this growth, having a strong presence in expanding metropolitan areas and the operating leverage to meet growing demand. In Greece, the restart of major projects, which would energize the construction sector, is not anticipated before the end of 2018, while private building activity remains at low levels.”

Of its trading outlook in Southeast Europe, Titan Group said: “There are expectations for a mild, longer-term growth of the construction sector. Τhe Group’s plants are currently operating at levels well below their nominal capacity and thanks to recent investments are increasing their competitiveness through the expansion of the use of alternative fuels, to the benefit of the Group’s operations as well as of the local communities.”

The Group has also commented on its prospects for growth in Egypt, Turkey and Brazil, saying: “In Egypt, the entry into operation of the Egyptian army’s new 12 million tonne cement plant increases the pre-existing surplus capacity, resulting in the contraction of operating margins of existing plants. Furthermore, the increases applied to the cost of electricity and additional levies imposed on each tonne of cement produced as of 1st July, 2018, necessitate an increase in prices which, however, appears challenging in the short-term.

“In Turkey, the deterioration in macroeconomic indicators (inflation, interest rates, and foreign exchange rates) in tandem with the pressure on the banking system is expected to lead to a significant further reduction in cement demand in the near term. Adocim is well prepared to face the anticipated downturn, owing to its modern asset base, competitive cost structure and low gearing.

“In Brazil, the conclusion of the pre-election period increases expectations for the advent of a new growth cycle in the cement market.”