Readymix reports €5.5m loss for third quarter

BUILDING MATERIALS group Readymix has reported an operating loss of €5.5 million for the third quarter, citing falling revenues and rising costs in all regions and all products.

The company said like-for-like revenues had fallen 18 per cent during the nine months to the end of September while transport and energy costs were 30 per cent higher. At the end of August last year Readymix disposed of its Finlay Breton precast concrete business for €49 million.

Readymix said it has closed a fifth of its sites and laid off 15 per cent of its workforce and is planning further cost reductions based on its outlook for 2009. The company said it will continue to try and make selective divestments from its property portfolio.

Readymix chairman Adrian Auer said the fourth quarter was expected to be "very challenging" and that the company's priority was to regain profitability and remain competitive. "This is a robust and resilient company with a debt-free balance sheet. I am confident that we are taking the most appropriate course of action to protect the business and our stakeholders from the worsening economic conditions," he said.

Readymix posted a pretax loss of €9.6 million for the first six months of 2008. Its shares closed down almost 17 per cent at €0.54.