Readymix first-half losses likely to hit €7m

LOSSES AT building materials group Readymix are likely to have hit almost €7 million in the first half of the year, the group said yesterday.

Readymix issued a statement yesterday warning that revenues for the first six months of 2009 were down 44 per cent. The company said it expects losses before tax for the first half of 2009 to be €6.9 million, 28 per cent less than the €9.6 million it lost during the same period last year.

It lost a total of €47 million before tax last year.

Group chairman Adrian Auer blamed extremely difficult trading conditions in the Irish construction sector for its losses. Readymix supplies cement, which is used in virtually every type of development, quarried stone (known as aggregates) and other materials to the building industry.

The downturn in the industry has been accelerating since late 2007. Readymix’s statement said it expects those conditions to continue for the rest of the year in all of its product lines.

“A limited number of continuing infrastructure projects have not compensated for the collapse of demand from the housing and commercial sectors,” it said.

Between March last year and March this year, Readymix laid off 178 workers, more than one quarter of its workforce. The company said yesterday it intends to continue rationalising its operations where it can without damaging market share and services to its customers.

Mr Auer said the company is focused on making its core businesses more efficient. “This is taking place both through internal restructuring and a rigorous re-assessment of all external costs,” he said. “Readymix remains in a strong position to weather the current macroeconomic difficulties and to take advantage of an upturn in trading conditions.”

Last December, the group announced a cost-cutting programme aimed at saving €15 million a year. This included a 25 per cent pay cut for non-executive directors and a 10 per cent salary reduction for management.

The group has a strong balance sheet and ended 2008 with net assets of €113 million.