Titan hit by weak domestic construction activity, Greece

Titan hit by weak domestic construction activity, Greece
Published: 03 August 2011

Titan Cement of Greece posted a 36 per cent fall in profit in the second quarter due to weak building activity in its main markets.

Net income dropped to EUR27.7m while sales fell 23 per cent to EUR304.1m.

"The deterioration is mainly due to the collapse of building activity in Greece and its grounding at very low levels in the United States," the company said in a bourse filing.

"For the full year, cement demand is estimated to be about 65 per cent below its 2006/2007 (peak) levels," the company said.

Political upheaval has also hurt the company’s sales in Libya and in Egypt, despite a EUR25m windfall gain from a tax reversal there.

Titan’s operations in Virginia and Florida remain hit by the US housing market bust. A recovery in US construction is not expected before 2012, Titan said.