HERACLES Group of Companies today announced sales of ?128.3 million for the first quarter of 2004, increased by 13.2% compared to the previous year. The increase in sales is mainly due to the domestic sales during the first quarter of previous year, which were affected by bad weather conditions and logistics problems.

Cost of sales increased by 9.2% compared to the previous year. As a percentage on turnover, cost of sales decreased from 83.7% to 80.7%, due to the higher profit margin of domestic market compared to exports.

Operating expenses decreased by 9.2% compared to 2003. Net financial expenses decreased by 58%, as a result of the significant reduction of net indebtedness due to the realization of operational cash flows.

The total operating income of the Group amounted to euro 14 million compared to euro 6 million in 2003, reflecting the aforementioned improvement of gross results and the reduction of operating and financial expenses. Profit before tax amounted to euro 14 million after extraordinary and non-operating expenses, compared to euro 5.9 million in the previous year.

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 Halkis Evia and one in Milaki 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 is also active in the production and sale of ready-mix and aggregate products.

Lafarge is the world leader in building materials, and employs 75,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of euro 13.6 billion in 2003.