Titan Cement posts Q1 loss in Greece, better overseas

Titan Group turnover for the first quarter of 2013 stood at 243 mln euros, posting an 8% increase compared to the first quarter of 2012. But the EBITDA declined by 29% to 24 mln. The group posted a net loss, after tax and minority interests, of 27 mln euros, compared to a net loss of 19 mln in the first quarter of the previous year.
Foreign exchange differences had a 4% negative effect on group turnover and a 7.7% negative effect on EBITDA.
Market trends differed markedly across the Group's countries of operation: a clear, by now, recovery in the U.S., a continuation of the decline in Greece, resilience despite adversity in Egypt, anemic yet stable demand in southeastern Europe and further growth in Turkey.
The company declared earlier that 2013 is expected to be another challenging year.
In Greece, both private construction and public works are heavily impacted by the economic depression. Demand for building materials will decline further from already extremely low levels, for the first half of the year. Markets in Southeastern Europe will continue to be adversely impacted by the Eurozone crisis and demand for building materials is not expected to recover substantially this year.
In Egypt, political and economic woes appear to be escalating in recent months and uncertainty is high. Although cement demand appears resilient, the increase in the cost of production and the weakening of the Egyptian Pound are expected to negatively affect results.
In Turkey, market conditions remain positive.
Finally, both short- and medium-term prospects appear positive in the U.S. The housing market seems to have entered a strong recovery phase, positively affecting the building materials industry. In a recent publication, the Portland Cement Association (PCA) expected cement demand to grow by 6.2% in 2013 and by 9.2% in 2014.