(USA) -- Titan reported on Wednesday that its nine-month net profit fell 36.5 percent to 103.7 million euros ($156.1 million).
The fall is attributed to a slump in construction activity in the Balkans and the United States. The company also attributes that results were also affected by the Dollar and Egyptian Pound appreciation versus the Euro.
The Group΄s performance suffered by the crisis of the construction sector in the USA, slump in the demand for building materials in Greece and the downturn of markets in Southeastern Europe.
While the construction activity in Greece suffered due to the deterioration of the economic situation and excess housing inventory available in the market, demand for building materials in U.S continued to decline due to the oversupply of houses in the market, the decline of building permits issued and the crisis of the non-residential market.
‘The prolonged crisis in the U.S. construction sector and the continued drop in demand for building material in Greece, as well as the decline in markets in southeastern European countries, had a negative effect on group sales," the company said in a statement.
Revenue declined 11.6 percent to 1.04 billion euros, while earnings before interest, tax, depreciation and amortisation dropped 11.4 percent to 258 million euros.
To overcome the losses, Titan is currently focusing on generating cash by cutting costs, managing liquidity and reducing debt.
Even though the company sees no improvement in the prevailing conditions within this year, it hopes that Fiscal stimulus in the United States might help housing in 2010.
By: Rashmi Kalia (ARI-C NEWS)