RMC's profit down 37% due to operations in Germany

RMC Group has seen first half profit slashed by 37% following poor performances across its German operations.

In its interim results, released today (Friday), the group said it was currently considering its options in Germany, where it and its rivals are putting through price rises.

However, the group has stopped short of announcing a pull out of its operations in the troubled area and said it would "continue to seek ways to return the German business to profitability".

Pre-exceptional pre-tax profit slumped to £50.7m in the six months ended June from £80.6m as the firm made a £31.4m operating loss in Germany compared with an £2.5m profit at the same point last year. The City was expecting a profit of £48 to £60m.

RMC said it expects to meet full-year financial forecasts.

The group's chairman Sir John Parker said: "Against this background, our results are in line with the expectations set earlier in the year.While market conditions in Germany remain difficult, business performance elsewhere has generally been encouraging, with the recovery at Rugby a particular highlight," he added.