Titan announced its Q4/12M results which below market estimates in terms of turnover and EBITDA and above estimates in terms of bottom line helped by FX gains . Announcement highlights:
§ Sales growth in Greece and USA offset the decrease in Egyptian domestic market. Stable overall in SEE.
§ Lost production in Egypt (50% of capacity) due to fuel shortages. First Beni Suef kiln coal conversion investment completed and operational as of December 2014.
§ Favourable pricing conditions in the US and SEE. Exports benefit from strong $ in Q4. FX Gains at 31m (Q4 +11.4m)
§ Cost savings in Greece and SEE reduce CoGS while energy costs in Egypt rise sharply.
§ Lower operating cash generation vs 2013 due to increased CAPEX and Working Capital
§ Net Debt at 541m up from 529m in Q3 and 509 in Q4 2013.
§ Outlook for 2014: Improving results in USA and Egypt, Greece and SE Europe at same levels 2014 supported by road wotk activity.
§ Board of Directors will propose to the Annual General Assembly of Shareholders the distribution of special reserves to the amount of €12,694,879.20 corresponding to €0.15 per share
Figures regarding 2013 are presented restated as per the application of IFRS 11, according to which, the Group henceforth accounts for its activities in Turkey, conducted through its 50%-50% JV, via the equity method. The following table summarize results vs consensus.
Head of research
Beta Securities S.A.
29 Alexandras Ave.
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