Titan Group turnover reached euro 1.036m for 2002, an increase of 5% versus the previous year. Operating EBITDA at euro 292m, up 19% versus last year and net profits for the Group, after minority interests and taxes, were also up 11% at euro 114m.

More specifically:

• In Greece, demand for cement, ready-mixed concrete and aggregates grew to a very high level, as a result of the strength of public works activity and private construction.
• In the USA, the strength of the housing market broadly offset the commercial sector softness. Overall, the market improved in the Florida region, but softened in the Mid Atlantic region.
• In Egypt, macroeconomic and cement market conditions continued to worsen.
• In South-Eastern Europe, market conditions continued to improve in all three regions where the Group operates (FYROM, Bulgaria, Serbia).

The international presence of the Group entails the exposure to exchange rate risks, most significant of which refer to the relationship of the Euro against the US dollar and the Egyptian pound. The significant devaluation of these two currencies against the Euro during 2002 affected the operating profits and the Balance Sheet of the Group.

Foreign exchange differences and losses of euro 26.2 m are included in ?extraordinary and non-operating costs?, and the positive foreign exchange differences of euro 8.6 m appear under ?extraordinary and non-operating income? of the Consolidated Statement of Income. Further positive exchange rate differences of euro 28.7 m resulting from the revaluation of long term loans appear under ?other provisions? of the Balance Sheet.

In the beginning of 2003 a significant devaluation of the Egyptian pound occurred. Against this risk, a provision of euro 5 m has been formed during 2002 which partially covers the losses and appears under ?provisions for devaluation of investments and securities? of the Consolidated Statement of Income.

On the capital expenditure side, the modernization projects of the Thessaloniki and the Pennsuco plants progressed well and are expected to be completed in 2003 and 2004 respectively. Investment in fixed assets for the group for 2002 was euro 132m. A further euro 100m was invested in three acquisitions that include Kosjeric in Serbia, Alexandria Portland Cement Company in Egypt, and the Separation Technologies Inc. in the USA. Therefore, total capital expenditure of the Group reached euro 232m, funded almost entirely by the operating profits of 2002.

Sales of the parent company, Titan Cement Company SA, were euro 411m for 2002 representing an increase of 9% versus the prior year. Operating EBITDA at euro 146m was up 21%. Net profit, after minority interests and provisions for taxes, increased 4% to euro 90m, including income from participations of euro 14m.

Titan SA Board of Directors decided to propose to the Annual General Assembly a cash dividend of euro 0.85 per share, versus euro 0.80 for the year 2001.

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Download the Consolidated Balance Sheet of TITAN CEMENT CO in .xls format

Download the Consolidated Balance Sheet of TITAN CEMENT CO in .xls format