Titan Q3/9M results 2014 (Manos Chatzidakis) ~ Naked Monk

13/11/14

Titan Q3/9M results 2014 (Manos Chatzidakis)

6:11 μ.μ. No comments

Titan (Q3/9M Results): Titan reported a better than expected set of Q3 results on strong US sales and FX gains (US dollar and Egyptian lira) of 21.2 on quarterly basis vs -4.5 losss in 3Q 2013. In specifics:

¡ Total turnover for Group region Greece and Western Europe for the period January – September 2014 grew by 17% reaching €221m. EBITDA grew to €29m versus €13m in the same period in 2013.

¡ In the USA, demand continued to recover, particularly in Florida where a significant part of the Group’s US activities are based. Demand originates mainly with the residential sector, within the broader context of recovery experienced by the US economy. Higher sales volumes and improved prices contributed to the revenue growth of Titan America, which in the nine month period reached €345m posting a 13% increase. ΕΒΙΤDA stood at €32m, posting a 37% increase compared to 2013.

¡ In Southeastern Europe, construction activity was essentially flat versus the previous year. Capacity utilization rates for the Group’s plants remain low. Economic recovery in the region remains weak, thereby also directly affecting the construction sector. In the period January – September 2014, turnover grew by 1.5% and stood at €167m while EBITDA reached €53m posting a 10% increase.

¡ In Egypt, the market maintains its positive momentum and overall cement consumption exceeded that of the previous year. Turnover in Group region Eastern Mediterranean (Egypt) in the period January – September 2014 declined by 24% to €147m. EBITDA declined by 48% compared to the same period in 2013 and stood at €32.5m.

¡ Cement demand in Turkey continued to grow at healthy rates. Profits for Turkey, which is consolidated by the equity method, were €3.9m.

¡ Group turnover grew by 2% in the third quarter of 2014, reaching €308m. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) were flat at €58m. Net profit reached €28m versus €7m in the third quarter of 2013.

¡ Net is down 34m since 9M 2013 yet up 39m q-o-q. Roughly 40% of gross Group debt is in the form of bonds, and the remainder from Greek and international banks in various countries. Capital expenditure in the nine month period reached €47m versus €29m the previous year, mostly directed to Egypt and the USA.

¡ Outlook is positive for US market and Egypt while conditions in Greece remains challenging on retail demand.

CC details (18:00 GR time):

¡ GR +30 211 180 2000
¡ UK +44 (0) 800 368 1063
¡ US +1 866 288 9315

Titan	Results 9M 2014			Estimates H1'14
*In thous. euro*	2013	2014	Δ	9M 14 E	Δ (Est)
Sales	851,801	879,732	3.3%	887,921	-0.9%
Q3	302,470	308,511	2.0%	316,700	-2.6%
EBITDA	146,503	146,656	0.1%	148,197	-1.0%
(% *Sales*)	*17.20%*	*16.67%*	*-53 bps*	*16.69%*	*-2 bps*
Q3	58,249	57,659	-1.0%	59,200	-2.6%
(% Sales)	19.26%	18.69%	-57 bps	18.69%	-0 bps
Net Income	-14,552	30,504	309.6%	24,308	25.5%
*(% Sales)*	*-1.71%*	*3.47%*	*+518 bps*	*2.74%*	*+73 bps*
Q3	7,247	27,596	280.8%	21,400	29.0%
(% Sales)	2.40%	8.94%	+655 bps	6.76%	+219 bps