Readymix has loss of €4m in first quarter as volumes fall

BUILDING MATERIALS group Readymix has lost over €4 million in the first three months of this year, the company told shareholders yesterday, and trading conditions continued to be tough.

The company held its agm in Dublin. In a statement released before the gathering it announced a pre-tax trading loss of €4.2 million for the first quarter of 2011.

The company lost €3.8 million during the same period in 2010. First-quarter revenues were down by 27 per cent on 2010.

“This was mainly driven by a drop in volumes across all products,” Readymix said. “In an exceptionally competitive market, prices across a number of our key product lines also continue to come under increasing pressure.”

Readymix expects revenues to continue to fall below 2010 levels through the rest of this year.

The company yesterday blamed continuing poor volumes and pressure on prices in all of its markets for the first-quarter losses and poor prospects for the rest of the year.

The group’s biggest shareholder is Mexican giant Cemex, which is said to be considering delisting Readymix from the Irish Stock Exchange. This month Readymix announced it was in talks with another – unnamed – business that may lead to a bid for some of its assets and subsidiaries.

Previous discussions with a third party fell through in March.

Commenting on yesterday’s statement, Robert Gardiner, analyst with stockbroking firm Davy, said the loss was in line with forecast losses for the year of €10 million. Davy expects revenues to fall by 15 per cent overall, with the Irish businesses suffering a 25 per cent drop and sales from the UK operations remaining flat.