Greece’s Titan Cement Won’t Pay Dividend After 2011 Profit Drops
Titan Cement Co SA (TITK), Greece’s biggest producer of the material, doesn’t plan to pay a dividend for the first time in almost six decades after profit slumped last year.
The planned proposal by the board of directors will end a “58-year run of continuous dividend payouts between 1953 and 2010,” the Athens-based company said in an e-mailed statement today.
Net income in 2011 dropped 89 percent to 11 million euros ($15 million) from 103 million euros a year earlier as construction activity in Greece fell and unrest in North Africa hurt exports, Titan said. Sales declined 19 percent to 1.1 billion euros and earnings before interest, taxes, depreciation and amortization dropped to 242.7 million euros from 315.1 million euros.
The deterioration “is due to the collapse of the construction sector in Greece, the stagnation in building activity in the USA at very low levels, as well as the effect of the difficult current situation in the Egyptian market,” according to the statement.
Demand in Greece probably will fall “considerably” in 2012, Titan said. Public and private building activity in Greece, now in its fifth year of recession, fell almost 8 percent in September from a year earlier, according to the Hellenic Statistical Authority. The figure is measured by the number of permits issued.
To contact the reporter on this story: Natalie Weeks in Athens at email@example.com
To contact the editor responsible for this story: Jerrold Colten at firstname.lastname@example.org