HERACLES Group of Companies today announced sales of Ξ 280 million in the first semester of 2002, up 3,7% compared to the previous year. Domestic cement sales volumes increased by 9,7%, amounting to 2.67 million tonnes, while export volumes were lower at 1.55 million tonnes.

Both sales and production volumes have recovered following the disruption caused by exceptionally bad weather conditions in January. Gross margins were much improved compared to 2001 reflecting lower fuel and labor cost.

Administrative, selling and distribution costs increased by 1,3% compared to 2001, with the increase limited by further benefits arising from the merger of Heracles and Halkis.

The total operating income of the Group amounted to Ξ46,9 million, reflecting a reduction in financial expenses, due to lower interest rates and a gain on disposal of subsidiaries amounting to ?1.0million. Net profit before tax reached Ξ16.5 million after extraordinary and non-operating expenses, which includes provision for the total cost of the voluntary redundancy scheme in 2002.

HERACLES Group of Companies, a member of Lafarge, has 3 cement plants in Greece: OLYMPOS in Agria Volos which is the largest cement plant in Europe, HERACLES II in Milaki Evia and HERACLES III in Halkida. 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 products, quarrying of aggregates, construction and installation of metallic constructions, industrial automation and production control systems, transportation and research and development. In 2001, HERACLES posted sales of ?554 million.

Lafarge is the world leader in building materials, and employs 83,000 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 ?13.7 billion in 2001.