HERACLES Group of Companies today announced sales of €113.4 million for the first quarter of 2003, down 9.5% compared to the previous year. The decrease in sales is mainly due to the exceptionally bad weather conditions in the whole country during the first quarter of the year and the ensuing decrease of domestic sales volume. This decrease is not regarded as indicative for the course of annual sales and in April significant sales volume was recovered. Export volumes were at the same level as last year.
The differentiatition in sales mix resulted in an increase of the cost of sales as a percentage of turnover from 77.7% in 2002 to 84.3% in 2003, as the profit margin of domestic market is higher compared to exports.
Operating expenses increased by 1.5% versus last year, mainly due to the inclusion in the consolidated results of the results of Hellamat SA, that was acquired in My 2002. On a like for like basis, operating expenses decreased by 1.8% as a result of the continuing restructuring.
The total operating income of the Group amounted to €6 million, due to the reduced gross profit. Profit before tax amounted to €5.9 after extraordinary and non-operating expenses.
HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece. One in Volos, which is the largest cement plant in Europe, one in Milaki Evia and one in Halkis Evia. The total production capacity of the Group is 9.6 million tonnes annually which makes it the largest cement producer in Greece. HERACLES Group owns a number of subsidiary companies that are active in the production and sale of ready-mix and aggregate products (Lafarge Beton) construction and instalment of metalic constructions, industrial automation and production control systems, transportation and research and development. In 2002, Heracles posted sales of €558 million.