Greece: Titan Cement has reported continuing falling profits in the first half of 2012, amid an ongoing slump in Greece and weakness in many of its other markets. However, second quarter turnover in 2012 has started to improve year-on-year.

Titan posted a turnover for the first half of 2012 of Euro548m, a 2% decline compared to the first half of 2011. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 21% to Euro112m. Net profit reached Euro8m, a 65% decline compared to the same period in 2011. In addition, the weakening of the Euro versus local currencies had a limited Euro2m positive impact on operating results for the first half of 2012.

In the second quarter of 2012, Titan's turnover increased by 6% to Euro322m compared to the same period in 2011. The increase in turnover, the first in six consecutive quarters, is mainly due to what appears to be the beginning of the recovery in construction activity in the US, as well as increased exports from Greece. EBITDA declined by 17% to Euro78m while net profit reached Euro28m, the same as in 2011.

Titan estimate that demand for its products in Greece is continuing to decline at an annual rate of roughly 40%. Cement consumption for 2012 is expected to be approximately 75% lower than the levels recorded in 2007. The last time consumption stood at such levels was in the first half of the 1960s.

For the remainder of 2012 Titan does not expect private building activity or infrastructure projects to improve its outlook in Greece. In the US it expects the increase in cement consumption noticed in the first half of 2012 to continue. In Southeastern Europe the continued slowdown related to the Eurozone crisis is expected to hold back demand for building materials. In Egypt expectations about cement demand remain cautiously optimistic whilst in Turkey demand remains at high levels for the time being for both private and public works.