Czech Republic: Czech cement producer Cement Hranice has reported a rise in sales of 14.5% year-on-year to Euro68.8m in 2011, due to higher exports. Its net profit increased by 10% to Euro20.3m following a previous drop, the company said in its annual report.

In 2010 the producer's sales dropped by 15% to Euro60.4m and its profit decreased by 26% to Euro18.5m. Cement Hranice's results improved in 2011 due to supplies to a sister company in Poland, according to the firm's chairman Jaromir Chmela. Sales of cement were also favourably influenced by good weather in 2011. The company raised the amount of sold products by 25% in 2011 as a result.

"Poland has not been affected by a crisis in the construction segment because it was preparing infrastructure for the European football championship," said Chmela.

Although Cement Hranice's sales increased in 2011, revenue fell due to a decrease in prices. Before 2011 the company sold 75% to 80% of its production on the Czech market but in 2011 its share dropped to 65%. The remaining 35% of production was exported to Poland, Hungary and Slovakia, increasing Cement Hranice's exports.

Cement Hranice's expects a drop in sales, as well as in profit, in 2012. The company's results will be influenced by the economic crisis and a continuing fall in construction output, according to Chmela. Cement Hranice, whose owner is German company Dyckerhoff AG, employed 166 people in 2011.