Dyckerhoff narrows net loss, Germany
Dyckerhoff AG said Monday it narrowed its net loss in the first-quarter of 2006, aided by price increases as well as business growth in Eastern Europe.
Net loss was EUR10m versus an EUR26m loss in the previous year.
Group sales for the first quarter of 2006 increased by 13% to EUR229m.
In the Germany/Western Europe division, the weak cement and ready-mixed concrete market and the long winter continued to have negative effects.
Price increases were able to counterbalance the drops in quantity, and led overall to a slight operating increase in sales. The decline in nominal sales can essentially be attributed to the sale of the Eurobeton Group as of January 1, 2006.
In the Eastern Europe division, especially the Russian and Ukrainian business contributed to the growth. Plants in the US benefited from the growing construction industry.
EBITDA of EUR21m more than doubled. With improved net interest and other financial results, the result before income taxes improved overall by EUR18m, but was seasonally-related still negative.
For the whole year 2006 Dyckerhoff is expecting that Group sales will at least match the previous year’s level. This will positively influence EBITDA, which is estimated to perform slightly above the previous year’s figure.
Lower interest charges and considerably reduced depreciations will markedly improve the result before taxes and net profit. Published under Cement News
