Financial overview

Tarmac operating profit by product 2007

In 2007, Tarmac’s operating profit climbed by 38% (excluding benefits from exchange rate movements) to $474 million. Although the year was characterised by high cost pressures and volatile energy prices in a tight and highly competitive market, disciplined margin management, procurement initiatives and healthy demand from certain sectors had a major positive bearing on results. In the UK, operating profits grew by 41% with sales growing ahead of the market. At Tarmac International, operating profits were 32% higher, benefiting from milder weather and buoyant markets in France, Poland and the Czech Republic.

$ million (unless otherwise stated) 2007 2006
Operating profit 474 317
EBITDA 732 539
Net operating assets 4,509 4,185
Capital expenditure 274 279
Share of Group operating profit 5% 4%
Share of Group net operating assets 17% 20%

In 2007, Copebrás and Yang Quarry were reclassified from Industrial Minerals to Base Metals and Coal respectively, to align with internal management reporting. As such, the comparative data has been reclassified.