HERACLES Group of Companies today announced sales of Ξ558 million in 2002, 1% up compared to last year, reflecting a strong domestic market performance with a volume increase of 10.7%, offset by a weak international market.

Net profit before tax increased by 16.1% and amounted to euro 71.3 million, reflecting the efforts of the management to focus on the reduction of production and operating costs. The Group realised cost structure improvements due to the introduction of pet-coke in the production process and a significant reduction of administrative, selling and distribution costs by 5.7% compared to 2001 that reflects further benefits from the merger of Heracles and Halkis as well as the effect of the divestments concluded in 2002. Operating income increased by 15.3% to euro 103.6 million.

The above profitability improvements were achieved after the impact of the Voluntary Redundancy scheme cost of euro 31 million realised in the year 2002.

The Board of Directors of AGET Heracles has recommended the payment of dividend at the level of euro 0.30 per share, 100% increased in comparison to last year.