< Greece and Western Europe
Construction Activity
Due to the deepening economic crisis, the Greek market witnessed a sharp contraction in building activity and reached a forty-year low. The combination of growing uncertainty regarding future employment and household income, the decline in bank loan issuance and the existing surplus housing stock, resulted in a steep decline in demand for building materials. Moreover, repeated cutbacks in the public investment program have brought public works to a standstill. In addition to these factors affecting domestic consumption, exports to the region also declined sharply in 2011, as many countries in North Africa and the Middle East witnessed political and social upheaval.
Turnover in Greece and Western Europe in 2011, including exports, was €269 million, posting a 39% decline. EBITDA reached €35 million, posting a 60% decline. This figure was impacted by a one-off charge of €9.3 million for the implementation of a restructuring plan aimed at fixed cost reduction and productivity, which is expected to generate annual recurring savings of €14.1 million.