Titan’s Q3 profits jump, boosted by weaker euro
Cement maker Titan said its third-quarter net profit more than tripled, helped by foreign exchange gains from a weakening euro.
The Greek giant with operations in the Balkans, Turkey and Egypt, had been hit hard by a weak U.S. housing market and the Greek debt crisis. But its fortunes began to improve last year, helped by the restart of a major Greek toll road project and a recovery in the United States.
Net profits rose to 27.6 mln euros in the third quarter from 7.2 mln in the same quarter last year. A weaker euro against the dollar and the Egyptian pound led to foreign exchange gains of 21 mln euros in the quarter, it said, following currency losses of 4.5 mln euros last year.
Sales rose by 2% to 308.5 mln euros, with growth in the U.S. and at home more than offsetting a decline in Egypt, where natural gas supply shortages hurt the operation of its plants.
Titan said it was optimistic on its performance for the rest of the year, citing a continuing recovery in North America and expectations for higher cement consumption at home for the first time in seven years.
Titan shares have fallen 5% this year against a 24% loss of the ASE general index.