Readymix losses dip significantly in third quarter

BUILDING materials and cement products company Readymix has reported a significant lowering of losses for the third quarter of the year and for the current year to date, on the back of its continued cost restructuring moves.

For the three months to the end of September, the company made an operating loss of €1.5 million – down from a loss of €5.5m for the same period last year.

Total losses for the year to-date amount to €8.5m, according to the company, but that too is significantly reduced from the €15.7m incurred in the first nine months of last year.

Group revenue for the first nine months of this year has, however, fallen by around 40% on a like-for-like basis.

The company, with headquarters in Dublin – is predominantly owned by Mexican group Cemex. It published the latest figures as part of a third quarter interim management statement.

It reiterated it will continue to consider “selective divestments” from its property portfolio but will only conclude sales where it is felt that the move “represents long-term value for shareholders”.

A spokesperson for the company said there is nothing solid in the pipeline regarding asset disposals.

Readymix chairman Adrian Auer warned there is still uncertainty regarding the timing of the recovery of the construction sector here, but he added the company is “now seeing the results of aggressive rationalisation of its cost base”.

Earlier this year, Mr Auer warned the company was continuing to face “extremely difficult trading conditions” in the Irish construction sector.

He said the ongoing focus would be on “improving operational efficiencies” in its core businesses.

While Readymix hasn’t given a full year guidance, it has said it expects further operating losses for 2009 as a whole, albeit at “substantially” reduced levels to the €47.3m loss posted last year.