Athens, 26/03/2012

Heracles Group Announces 2011 Results

Results reflect the intensifying recession in the construction activity

Heracles Group of Companies announced today sales of 277.51 million Euros for 2011, decreasing by 31% compared to 401.99 million Euros in 2010. Sales of the Company were at 239.40 million Euros, decreasing by 31.8% compared to 350.80 million Euros in 2010.

The Group's earnings before taxes, interest, depreciation and amortization (EBITDA) in 2011 was negative amounting to 5.42 million Euros, while in 2010 the Group's EBITDA was 14.31 million Euros. The Company's EBITDA in 2011 was negative amounting to 3.10 million Euros compared with profit of 22.56 million Euros in 2010.  

The Group presented in 2011 losses after taxes of 55.86 million Euros, compared with 45.86 million Euros losses after taxes in 2010. In 2011 the Company presented losses after taxes of 46.28 million Euros compared with 26.43 million Euros losses in 2010.

The decrease in the Group and the Company sales in 2011 reflects the intensifying recession in the domestic market of private construction activity, for a third consecutive year, as well as the substantial suspension of the construction activity in public and co-financed infrastructure. In 2011, the Group's and the Company's earnings before taxes, interest, depreciation and amortisation (EBITDA) was further impacted by the impairment of idle fixed production assets.

For 2012 it is expected that private construction activity will follow the recorded to date trend. It is estimated, that part of the domestic production activity lost, will not be absorbed by demand in international markets because of the adverse conditions that prevail in some markets traditionally supplied by the Group and the challenge that domestic production faces from more competitive neighbouring countries.

The Company continued its measures for the reduction of operating costs and the optimization of the production and supply chain processes. In 2011, the significant reduction of fixed cost that was achieved partially offsets the effects of the domestic and international market deterioration as well as the increase in solid fuels and raw materials prices.

The Group's investments in 2011 amounted to a total of 12.63 million Euros compared to 21.06 million Euros in 2010. Operational improvements and investments were mainly focused on the Group's strategic priorities of promoting health and safety, upgrading environmental performance, and improving production efficiency and customer service.