OPERATING PROFITS at building materials group Readymix slumped by 65 per cent last year as the house-building slowdown hit home.
The Dublin-quoted company, controlled by Mexican giant Cemex, had already flagged the fall in 2007 profits in two announcements issued to the markets over the last four weeks.
Yesterday, Readymix said that revenues dropped 10.3 per cent last year to €220.2 million from €245.37 million in 2006.
Total operating profits dropped 65.4 per cent to €6.77 million from €19.57 million.
Profit before tax was down 35 per cent last year at €27.8 million from €42.6 million in 2006.
Earnings per share fell to 19.53 cent from 33.89 cent.
The company left its dividend unchanged on 2006 at 7.76 cent. This includes a final dividend for the year of 6.11 cent a share.
The company yesterday blamed the fall in profits on "tighter trading conditions".
These were "due mainly to the decline in house-building and construction activity, the loss of earnings resulting from the tactical disposal of selective parts of the concrete products business, and non-recurring costs associated with the introduction and implementation of new operating systems".
Last year the group took steps to cut its exposure to residential building. It announced the closure of a manufacturing facility in Naas, Co Kildare, with the loss of up to 50 jobs.
It also sold its Finlay Breton ready-mixed cement business to Tyrone-based Acheson & Glover for €49 million.
In its statement yesterday, Readymix chairman Adrian Auer, said that 2007 had been a "year of transition" for the company. "The bottom-line performance in 2007 does not reflect the financial strength or future prospects of the group, which has a strong balance sheet and a very healthy net cash position of €37 million," he said.
Mr Auer added that the group's new operating systems would give it better visibility and control. These new systems would allow the business to operate efficiently in tougher market conditions.
Cemex owns 61 per cent of Readymix.
Readymix plc: results
Revenue: €220.2m (-10.3%)
Pre-tax profit: €27.8m (-34.8%)
EPS: 19.53 cent (-42.4%)
Dividend per share: 7.76 (0%)
