Readymix reveals first-half losses

BUILDING MATERIALS group Readymix lost €6.6 million in the first six months of the year, according to figures published by the company yesterday.

Readymix reported that the ongoing decline in the construction market left first-half revenues trailing last year by 30 per cent.

“This further slowdown in demand is reflected in the group’s financial results for the first half of this year, resulting in a reported pretax loss of €6.6 million,” Readymix said in a statement.

The deficit was roughly in line with the first half of last year, when the company lost €6.9 million before tax.

Its operations lost €6.1 million during the six-month period, before exceptional charges, which included €500,000 in rationalisation costs. Management said yesterday that it plans to continue to cut costs and make other savings.

Readymix does not expect any improvement in trading conditions in the short term.

“As a result of the weakness in the housing and commercial sectors and the uncertain timing of new infrastructure projects, Readymix plc expects the very demanding trading conditions to continue for the remainder of 2010 and into 2011,” the company said yesterday.

The company does not intend to embark on any major spending projects this year and directors are not recommending paying shareholders a dividend for the first half.

Its biggest shareholder, Mexican group Cemex, reported yesterday that worldwide revenues fell more than 25 per cent in the first six months of the year to €29.3 million, from €41 million during the same period in 2009.

It lost €6.6 million before tax, a marginal improvement on the €7 million it lost during the first half of last year.

Losses per share were 5.79 cent for the period, compared with 5.63 cent during the first half of 2009.