Readymix , the Irish maker of concrete and crushed stone controlled by Cemex SA, forecast a first-quarter loss of €3.9 million ($6.1 million) after a slowdown in the construction industry reduced demand.
"Challenging'' conditions in the second half of 2007 have continued into this year, the Dublin-based company said today in a statement ahead of its annual meeting. The pretax forecast includes a loss of €1.8 million on the sale of a plant and machinery, it said.
A doubling of European Central Bank interest rates in two years has stemmed property demand in Ireland and slowed homebuilding. Readymix gets about 60 percent of Irish sales from new housing construction, according to Dublin-based securities firm Davy.
The company said in March that profit fell 42 per cent to €21.4 million on the housing slump.
"Tough trading conditions are expected to remain throughout 2008, resulting in a continued downward pressure on margins,'' Chairman Adrian Auer said in the statement. "New infrastructure projects have not commenced as quickly as had been expected and demand in the housing sector continues to decline."
Sales volumes were also affected by a reduction in the number of working days this year, due to the timing of Easter, which occurred in March.
Bloomberg