Readymix predicts €7m pre-tax loss

Readymix predicts €7m pre-tax loss
Published: 15 July 2009

Readymix has forecast it will post a pre-tax loss of nearly €7m for the first half of this year.

The cement products and building materials company, predominantly owned by Cemex, had previously warned further full-year operating losses were on the cards this year, although substantially lower than the €47.3m losses reported for 2008.

Yesterday, management said via a pre-close trading update ahead of the August publication of Readymix’s first half financial results that losses of about €6.9m would be likely for the six months. This would be down from a pre-tax loss of €9.6m for the first half of last year.

The company added that revenues for the first half of the year are down by 44% on last year’s corresponding figures. Company chairman Adrian Auer said: "We continue to face extremely difficult trading conditions in the Irish construction sector. Our ongoing focus as a company, is improving operational efficiencies in our core businesses.

"This is taking place through internal restructuring and a rigorous reassessment of all external costs. Readymix remains in a strong position to weather the current macro-economic difficulties and to take advantage of an upturn in trading conditions."

While it is thought the majority of job cuts have been made, the company added yesterday the poorer market conditions would mean a continuation of the rationalisation of operations here. Some 52% of the company’s headcount has been reduced since the beginning of 2007.

Employee numbers have already been reduced by 10% since the beginning of this year. The company said it expects "these very difficult trading conditions" to continue for the remainder of this year, across all its product lines.