Tarmac, a subsidiary of the Anglo American mining group, generated a first half turnover 9.0% higher at US$2,439m (EUR1,585m), while the EBITDA declined by 10.7% to US$291m (EUR189m) and the trading profit fell by 22.0% to US$163m (EUR106m). Higher energy costs and tough trading conditions in Great Britain and in Spain explain the declining profit performance. The sale of the Spanish operations to Holcim for some EUR148m has been agreed and should be completed in the third quarter. First half capital expenditure in the period increased by 13.5% to US$118m.
In Great Britain the Tarmac aggregates business saw trading profit decline by 9%, while in the more housing dependent building products arm profits dropped by 46%. Improved performances Central Europe, France and the Middle East led to an 8% improvement from Tarmac International, before taking the US$6m Spanish losses into account. Tarmac is planning a second production line at its Tunstead cement works of Buxton Lime & Cement in Derbyshire, to take the annual production capacity there to some 1.7Mt, for which the feasibility study is under way.