Cement and building materials producer
Turnover and EBITDA declined in H1, but net profit increased to €24.8million from €13.9mn.
TITAN says the net profit increase is mostly derived from foreign exchange (FX) gains and lower tax charges. FX gains amounted to €4.5mn in H1 this year compared to FX losses of €17.1mn in H1 2017. TITAN Group had a lower tax charge of €9.6mn in the first half of this year compared to €16.5mn in H1 2017. It also had an overall lower effective tax rate, mainly due to the new fiscal law implemented in the US.
Consolidated turnover for the group reached €712.5mn, a drop of €61.3mn in H1. TITAN says that €57.2mn of this decline was due to the strengthening of the Euro against foreign currencies. EBITDA reached €122.2mn, a fall of 14%.
Based in Greece, TITAN Group owns cement plants in ten countries and is organised in four geographic regions: Greece & Western Europe, the USA, South-Eastern Europe and the Eastern Mediterranean.
TITAN says the growing US market remained the main profit driver for the group, although the combination of record wet weather and prolonged maintenance shutdowns at the group’s key productive units did not allow for an improvement in EBITDA in the first half of 2018.
Turnover in the US in the first half of 2018 was flat in US Dollars, but recorded a 9% decline in Euro terms, reaching €414.3mn. EBITDA declined by 3.7% in US Dollars, or by 13% in Euros reaching €80.2mn.
TITAN says the outlook for the US construction sector remains favourable, with demand expected to increase in H2 2018, weather permitting, as well as in the medium term. The company says it is well-placed to make the most of the US market’s momentum, having a strong presence in expanding metropolitan areas and spare capacity to meet growing demand. It adds that the recently legislated US tax reform should also have a beneficial effect on construction.
In Greece, TITAN says the commencement of new major works which would help reactivate the construction sector is facing delays while housing activity remains at extremely low levels. It adds that 2018 cement production will once again mostly be diverted to exports.
In South-Eastern Europe countries there are expectations for a longer term, mild increase in construction activity. The group says its plants are operating below capacity and thanks to recent investments have increased their competitiveness through the expansion of alternative fuel use.
