Results reflect the further decline in building activity
Heracles Group of Companies announced today sales of 401.41 million Euros for 2010, decreasing by 24.3% compared to 2009. Sales of the Company were at 350.80 million Euros, decreasing by 25.2% compared with 2009. The Group's earnings before taxes, interest, depreciation and amortisation (EBITDA) was 14.32 million Euros and represented a decrease of 84.4% compared to 2009, while the Company's EBITDA decreased by 75.8% compared with 2009, amounting to 22.56 million Euros. The Group presented in 2010 losses after taxes of 45.86 million Euros, compared with 15.36 million Euros net profit after taxes in 2009. Ιn 2010, the Company presented losses after taxes of 26.43 million Euros, versus 32.20 million Euros net profit after taxes for 2009.
Sales in 2010 were mainly affected by the further slowdown in private construction activity in the domestic market as a combined result of the excess supply of residences, the low level of residencies demand and the reduction of housing loans granted by banks as well as the slowdown of the construction activity in public infrastructure. In addition, lower export demand in markets traditionally supplied by the Group contributed to the reduction in 2010 sales.
In the framework of the Lafarge Group ''Excellence 2010'' strategic plan, intensified efforts and measures have been taken to reduce operating costs and optimize the production and supply chain processes. The optimisation of electric power consumption and the significant reduction of fixed cost are examples of actions taken under ''Excellence 2010'', which partially offset the effects of the increase in fuel and power prices as well as the slowdown of domestic and international markets.
Operational improvements and investments in 2010 were mainly focused on the Group's strategic priorities of promoting health and safety, upgrading environmental performance, and improving production efficiency and customer service.