Athens, 29/05/2013

Heracles Group announces 1st quarter of 2013 results

Results reflect the continued effects of recession and one off impact of reorganization of cement production structure

The efforts of the Company to increase export activity intensify     

Heracles Group of Companies announced today sales of 50.5 million Euros in the first quarter of 2013, increased by 15.1% compared to 43.9 million Euros in the same period of 2012. Sales of the Company were at 46.5 million Euros, increased by 26.3% compared to 36.8 million Euros in the first quarter of 2012.

The Group's earnings before taxes, interest, depreciation and amortisation (EBITDA) was a loss of 101.4 million Euros in the first quarter of 2013 compared to a loss of 16.0 million Euros in the first quarter of 2012. The Company's EBITDA was a loss of 98.9 million Euros in the first quarter of 2013 compared to a loss of 13.7 million Euros in first quarter last year. 

The Group presented in the first quarter of 2013 losses after taxes of 86.2 million Euros, compared to 23.3 million Euros losses after taxes in the same period of 2012. In the first quarter of 2013 the Company presented losses after taxes of 82.3 million Euros compared to 19.3 million Euros losses after taxes in 2012. The results of the Group and the Company in the first quarter of 2013 were significantly affected by the reorganization of the cement production structure, which aims to address effectively the impact of the recession in the construction sector, through reducing over capacity, to support the Company's competitiveness and to ensure conditions for the business development of the Heracles Group, both in domestic and export markets. Following the permanent cease of Halkis plant operation, the Company proceeded with total impairment of the assets of the plant and relevant provisions. The non recurring charge, net of deferred taxes, resulting from this reorganization amounts to 69.5 million Euros and affected the financial results of the Company and the consolidated financial results of the Group.

The deep recession in the domestic market of private construction activity as well as the suspension of the construction activity in public and co-financed infrastructure continued during the first quarter of the year. In order to offset the effects of the recession in the domestic market both the Group and the Company continue to intensify their export activity. The sales increase in the first quarter of 2013 is wholly attributed to the increase of exports. In addition, in the first quarter of 2013, the Group and the Company continued implementing strong measures to reduce operating costs and optimize performance in production, supply chain and administration activities.