Readymix expects €6.6m first-half loss, Ireland

Readymix expects €6.6m first-half loss, Ireland
16 July 2010

Readymix is anticipating making another full-year loss in 2010, as trading conditions in the second half of the year are unlikely to pick up significantly.

The Dublin-based building materials and cement products provider — which is predominantly owned by Mexican group, Cemex — said yesterday, via its first-half trading update, that it expects its interim results, when published next month, to show a pre-tax loss of €6.6 million for the six months to the end of June. This would only be marginally down on the €6.9m loss recorded for the corresponding period last year. The first-half figures are also likely to show an operating loss of €6.1m, which would be down by €1m on a year-on-year basis.

Yesterday’s trading update also said that Readymix’s total revenues for the first half of 2010 were down by 29% on a year-on-year basis.

On top of that, the company said another year of annual loss-making is likely. Readymix made a full-year loss of €13.8m in 2009, albeit significantly down on a loss of €47.3m the previous year. "Given the challenging macro economic conditions, particularly as they relate to the construction sector, Readymix does not anticipate an improved trading performance for the second half of 2010," it said.
The slashing of losses last year was mainly down to the company’s continued cost-cutting measures and it has said that selective disposal of assets from its property portfolio would be considered.

In May, Readymix’s management told shareholders at its annual general meeting it expected revenues to continue falling for the rest of the year. This followed on from its first quarter trading update which had showed a €3.8m trading loss and a 31% year-on-year drop in revenue – due to lower sales volumes for products and rising competitiveness in the marketplace.
Published under Cement News