Titan Cement administration expects the confirmation of an assessment made by the US Portland Cement Association (PCA) for a sluggish recovery in the US building materials market.
Last week, the association revised positively its forecasts for 2011-2013, referring to the increase of cement consumption by 2% (from 1.4%) in 2011, by 8.5% (from 4%) in 2012 and by 18.5% (from 16.9%) in 2013.
PCA estimates upward course of growth for the next three years in the US, after a very difficult period (starting in 2007), when the decline of cement consumption reached double digits. Although expected, the recovery of the construction industry in the US wasn’t visible last year.
In the Southeastern states, consumption remained low, while Florida market recorded further decline. Analysts (Alpha Finance) consider this development positive, however they maintain a negative outlook for the U.S. market because of low sales and a significant decline in prices.
Alpha estimates US sales to reach 26% of total sales and 7% of EBITDA for 2011, compared with 23% and 1% in 2010 respectively. Moreover, it expects operating profit of €21m from US in 2011 and €35m in 2012. In the first two months of the year, the group recorded a rise in sales in the US, while the analysts believe that Titan has already faced the worst in America and the administration hopes for an offset of the negative developments in Egypt and Libya.