Heracles Group sales down 37.6% in 1Q12, Greece

Heracles Group of Companies announced sales of EUR43.89m for the first quarter of 2012, a reduction of 37.60% compared with the EUR70.35m in the same period of 2011 as the Greek constructions sector stalls with now sign of a turnaround.

At the EBITDA level the group reported a loss of EUR16.59m against EUR9.38m in first quarter last year.

Heracles said in a statement,: “The decrease in the group and the company sales in the first quarter of 2012 reflects the intensifying recession in the domestic market of private construction activity, for a fourth consecutive year, as well as the substantial suspension of the construction activity in public and co-financed infrastructure. Although the first quarter is not necessarily indicative for the year's course, it is expected that 2012 private construction activity will follow a downward trend.??"

The group and the company have continued strong measures to reduce operating costs and optimise the production and supply chain processes, which aim to partially offset the effects of the domestic and international market deterioration.