Heracles 1Q sales fall 21.4%

Heracles 1Q sales fall 21.4%
01 September 2010

Heracles Group of Companies announced today sales of EUR211.92m for the first semester of 2010, a decrease of 21.4% compared to the same period in 2009. Sales of the Company were at EUR184.92m, a decrease of 23.4% compared with the first semester of 2009.

Sales in the first semester of 2010 were affected by lower demand in the residential housing market and the overall challenging economic environment. Moreover, reduced demand in export markets traditionally supplied by the Group further impacted 2010 first semester sales.

Intensified efforts and measures have been taken to reduce operating costs and optimize production and supply chain processes. The optimisation of electric power consumption, the reduction of fixed costs and distribution costs, as well as actions to increase productivity, help to partially offset the effect of lower volumes and higher fuel prices.

The Group’s earnings before taxes, interest, depreciation and amortisation (EBITDA) was EUR37.95m and represented a decrease of 10% compared to the first semester of 2009. The company’s EBITDA decreased by 7.9% compared with the first semester of 2009, amounting to EUR40.35m.

The Group reported first semester 2010 losses after taxes of EUR2.46m, while in the respective period of 2009 it had EUR11.25m net profit after taxes. The company’s net profit after taxes decreased in the first semester of 2010 to EUR5.70m compared to EUR22.94m in the corresponding period of 2009.

The net profit after taxes both for the Group and the company was substantially affected by the imposition of the special levy for social responsibility in May 2010 of EUR6m for the group and EUR5.85m for the company.
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