< Risks and Uncertainties
Strategic risks
Economic context:
The continuing unfavourable economic context in Greece and the U.S.A. has severely affected building activity. As such and for however long the crisis in these countries continues, it shall also continue to negatively affect Group sales and financial results. In order to address the risks arising from the continuing negative economic context in the aforementioned countries, the Group continued in 2011 the series of actions initiated in 2010 in order to strengthen its economic fundamentals through the reduction of debt and focus on cost containment.
Risks due to the cyclicality of the construction industry:
The construction industry is characterised by a cyclical fluctuation which is determined by the level of infrastructure spend, the demand for private and commercial real estate, mortgage lending, interest rates levels, etc.
The Group addresses this risk through the diversification of its activities across different geographic markets, with a portfolio of activities which includes mature markets, such as Western Europe and North America, as well as emerging markets in the Middle East and Eastern Europe, which historically have exhibited a looser correlation with economic cycles, consequently somewhat mitigating the Group’s exposure to this kind of risk.