Readymix posts first half loss of EUR6.9m
Cement products supplier Readymix has posted a pre tax loss of EUR6.9m for the six months to June, as conditions in its marketplace "further worsened".
The loss was, however, down 28 per cent on that of the same period last year, as the company continued to shed staff and cut other costs.
Its operating loss dropped by 17 per cent to EUR7.07m, but revenues from continuing operations were down by 45 per cent to EUR41.63m from the same period last year.
In a statement with its results, it says the challenging trading conditions experienced in the latter half of 2007 and throughout 2008 had further worsened in 2009.
"Demand for products continues to contract, arising from the exceptional weakness of the housing and commercial construction sectors," it said.
"Cost reduction initiatives have not been able to offset the serious reduction in revenues and, as a result, the group is reporting operating losses before non recurring items of EUR7.1m for the first half of the year.
"The group has recently agreed a cash facility of up to EUR15m from CFC, a subsidiary of Cemex, in addition to maintaining arrangements with local banks in the Irish market."
It said it expected "very demanding trading conditions for the remainder of 2009 and continuing into 2010, as a result of the weakness in the housing and commercial sectors and the delayed start of new infrastructure projects".
It added: "Against this background, the priorities for management are continued cost reductions and focusing on projects to deliver efficiency savings.
"The group remains willing to consider appropriate disposal of a range of non-core business assets. However, given the present weakness in the economy, any sales will only be agreed where it is felt that realisations add value to shareholders."
Published under Cement News
